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18 May 2015
GBP/USD: Make or break time - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD stalled short of the year high set on Thursday at 1.5814, before finally closing in the red on Friday.
Key Quotes:
"The Pound has enjoyed a strong demand ever since General Elections, and the latest decline against the greenback seems mostly corrective, rather than a sudden change in market's sentiment."
"Nevertheless, the UK will release some first-line data this week, including the annual rate of CPI, the latest BOE's Minutes, and Retail Sales, and all of them could be a make it or break it for the ongoing bullish trend."
"Technically and according to the daily chart, the upward potential remains intact as the technical indicators have turned lower in extreme overbought levels, but are not yet suggesting additional declines."
"Shorter term, however, the 4 hours chart shows that the price is breaking through its 20 SMA for the first time since May 5th, whilst the Momentum indicator is crossing the 100 level towards the downside and the RSI indicator heads strongly south around 56, all of which supports another short term leg lower towards the strong support around 1.5660."
Key Quotes:
"The Pound has enjoyed a strong demand ever since General Elections, and the latest decline against the greenback seems mostly corrective, rather than a sudden change in market's sentiment."
"Nevertheless, the UK will release some first-line data this week, including the annual rate of CPI, the latest BOE's Minutes, and Retail Sales, and all of them could be a make it or break it for the ongoing bullish trend."
"Technically and according to the daily chart, the upward potential remains intact as the technical indicators have turned lower in extreme overbought levels, but are not yet suggesting additional declines."
"Shorter term, however, the 4 hours chart shows that the price is breaking through its 20 SMA for the first time since May 5th, whilst the Momentum indicator is crossing the 100 level towards the downside and the RSI indicator heads strongly south around 56, all of which supports another short term leg lower towards the strong support around 1.5660."