25 Jun 2014
GBP/USD: Test of 1.6950 favoured while below 1.70 - FXStreet
FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, GBP/USD maintains a bearish tone that support at least a test of 1.6950 immediate support while below 1.70.
Key Quotes
"The GBP/USD began correcting lower this Tuesday, having been unable to extend last week gains. The UK inflation hearings gave the pair the first hit in the chin when governor Mark Carney stated early today grow is still sluggish and therefore inflation is not a big risk, meaning rates may not need to be risen as soon as he predicted a couple weeks ago."
"Better than expected US data did the rest, sending the pair down to 1.6966 on the day and now trading right below the 23.6% retracement of its latest daily rally."
"Technically, the hourly chart shows price developing below a bearish 20 SMA and indicators below their midlines albeit losing the bearish strength. In the 4 hours chart however, indicators maintain a bearish tone that support at least a test of 1.6950 immediate support, as long as 1.7000 continues to cap the upside. A break below 1.6950 exposes 1.6920, while a break below this last should lead to a deeper downward correction this Wednesday."
Key Quotes
"The GBP/USD began correcting lower this Tuesday, having been unable to extend last week gains. The UK inflation hearings gave the pair the first hit in the chin when governor Mark Carney stated early today grow is still sluggish and therefore inflation is not a big risk, meaning rates may not need to be risen as soon as he predicted a couple weeks ago."
"Better than expected US data did the rest, sending the pair down to 1.6966 on the day and now trading right below the 23.6% retracement of its latest daily rally."
"Technically, the hourly chart shows price developing below a bearish 20 SMA and indicators below their midlines albeit losing the bearish strength. In the 4 hours chart however, indicators maintain a bearish tone that support at least a test of 1.6950 immediate support, as long as 1.7000 continues to cap the upside. A break below 1.6950 exposes 1.6920, while a break below this last should lead to a deeper downward correction this Wednesday."