23 Dec 2014
GBP/USD about to challenge the year low - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet notes that the Pound got hit by worse than expected UK data, with the GBP/USD falling towards 1.5550 levels.
Key Quotes
“The Pound got hit by worse than expected data, falling against the greenback down to 1.5550, measly 10 pips below this year low posted last Thursday.”
“UK GDP in volume terms was estimated to have increased by 0.7%, while between Q3 2013 and Q3 2014, GDP in volume terms increased by 2.6%, revised downwards by 0.4% from the previous estimate. Current account deficit, widened above expected printing -27B in Q3.”
“Technically, the 4 hours chart shows an increase in the bearish momentum, with the price extending below its 20 SMA, now offering intraday resistance at 1.5625, and indicators heading south well into negative territory.”
“The pair bounced from its daily low but remains below the 1.5600 level, which keeps the risk to the downside.”
“Nevertheless, the thin volumes around all markets may see limited follow through over the upcoming hours, albeit a break below 1.5540 should lead to a steady decline down to the 1.5500 figure.”
“To the upside, mentioned 1.5620 area is the resistance level to follow, as only a recovery above it will deny chances of a fresh year low for the upcoming sessions.”
Key Quotes
“The Pound got hit by worse than expected data, falling against the greenback down to 1.5550, measly 10 pips below this year low posted last Thursday.”
“UK GDP in volume terms was estimated to have increased by 0.7%, while between Q3 2013 and Q3 2014, GDP in volume terms increased by 2.6%, revised downwards by 0.4% from the previous estimate. Current account deficit, widened above expected printing -27B in Q3.”
“Technically, the 4 hours chart shows an increase in the bearish momentum, with the price extending below its 20 SMA, now offering intraday resistance at 1.5625, and indicators heading south well into negative territory.”
“The pair bounced from its daily low but remains below the 1.5600 level, which keeps the risk to the downside.”
“Nevertheless, the thin volumes around all markets may see limited follow through over the upcoming hours, albeit a break below 1.5540 should lead to a steady decline down to the 1.5500 figure.”
“To the upside, mentioned 1.5620 area is the resistance level to follow, as only a recovery above it will deny chances of a fresh year low for the upcoming sessions.”