4 Dec 2014
GBP/USD defiant to broad dollar strength - FXStreet
FXStreet (Guatemala) - Valeria Bednarik noted the pounds resilience to the broad strength of the dollar.
Key Quotes:
“Pound has been the exception confirming the rule when it comes to dollar strength, as Cable closes the day higher, recovering from an intraday low of 1.5618 on the back of improving UK services PMI reading, up to 58.6”.
“Chancellor George Osborne's announcements in the Autumn Statement however, were not that encouraging, as the government is expected to borrow more money this year than had previously been predicted but also raised its forecast for economic growth from 2.7% to 3.0% for this year, and from 2.3% to 2.4% for 2015”.
“The GBP/USD however was unable to hold above 1.5700 despite an intraday spike up to 1.5718, trading however with a mild positive tone in the short term, as the 1 hour chart shows price steady above a bullish 20 SMA and indicators in positive territory”.
“In the 4 hours chart the technical outlook is still for the most neutral, with price moving back and forth around a flat 20 SMA and indicators around their midlines”.
“The 1.5740/70 price zone continues to be a critical resistance area, and it will take a recovery above it to suggest some interim bottom in the pair and further recoveries, albeit if the year low around 1.5580 gives up, the decline is expected to accelerate to sub 1.55 levels”.
Key Quotes:
“Pound has been the exception confirming the rule when it comes to dollar strength, as Cable closes the day higher, recovering from an intraday low of 1.5618 on the back of improving UK services PMI reading, up to 58.6”.
“Chancellor George Osborne's announcements in the Autumn Statement however, were not that encouraging, as the government is expected to borrow more money this year than had previously been predicted but also raised its forecast for economic growth from 2.7% to 3.0% for this year, and from 2.3% to 2.4% for 2015”.
“The GBP/USD however was unable to hold above 1.5700 despite an intraday spike up to 1.5718, trading however with a mild positive tone in the short term, as the 1 hour chart shows price steady above a bullish 20 SMA and indicators in positive territory”.
“In the 4 hours chart the technical outlook is still for the most neutral, with price moving back and forth around a flat 20 SMA and indicators around their midlines”.
“The 1.5740/70 price zone continues to be a critical resistance area, and it will take a recovery above it to suggest some interim bottom in the pair and further recoveries, albeit if the year low around 1.5580 gives up, the decline is expected to accelerate to sub 1.55 levels”.