GBP/USD: risk remains to the downside – FXStreet

FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound plunged to a fresh 8-month low against the greenback of 1.4893, initially affected by poor UK construction data, and later by stronger US one.

Key Quotes:

“Early Europe, the release of the November UK Construction PMI, showed that growth in the sector slowed, resulting at 55.3 against previous 58.8 and expectations of a 58.2 advance. The figures sent the pair towards the 1.5000 psychological figure, broken later on the day amid a strong US ADP survey.

Currently trading back above the 1.4900 level, the pair seems poised to correct some, but maintains a bearish tone, as according to the 1 hour chart, the technical indicators have turned higher in extreme oversold territory whilst the 20 SMA heads lower far above the current level. In the 4 hours chart, the technical indicators are turning higher in negative territory, but the risk remains towards the downside, whilst the 20 SMA has extended its decline above the current level, in line with a continued decline for this Thursday.”

Valeria Bednarik, chief analyst at FXStreet explained that the British Pound plunged to a fresh 8-month low against the greenback of 1.4893, initially affected by poor UK construction data, and later by stronger US one.

(Market News Provided by FXstreet)