20 Feb 2015
GBP/USD: 1.5460 opens up 1.5500; limited downside - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair eased towards the base of its recent range, having found buying interest earlier in the day around the 1.5400 level.
Key Quotes:
"The fundamental data that came from the UK continued to show that the economy is in the path of a recovery, as the British factory orders grew at the fastest pace in six months in February, according to the CBI Industrial Trends Survey, up to 10 against a 6 expected."
"The 1 hour chart shows that the price stands below a flat 20 SMA currently around 1.5450, acting as the immediate short term resistance, while indicators head slightly lower below their mid-lines."
"In the 4 hours chart however, the downside seems more limited, as the 20 SMA offers support around 1.5385 while the technical indicators head lower, but remain above their mid-lines. Some follow through below the mentioned support should signal a deeper correction down to 1.5335, while a recovery above 1.5460 on the other hand, should favor a steadier advance towards the 1.5500 price zone in the short term."
Key Quotes:
"The fundamental data that came from the UK continued to show that the economy is in the path of a recovery, as the British factory orders grew at the fastest pace in six months in February, according to the CBI Industrial Trends Survey, up to 10 against a 6 expected."
"The 1 hour chart shows that the price stands below a flat 20 SMA currently around 1.5450, acting as the immediate short term resistance, while indicators head slightly lower below their mid-lines."
"In the 4 hours chart however, the downside seems more limited, as the 20 SMA offers support around 1.5385 while the technical indicators head lower, but remain above their mid-lines. Some follow through below the mentioned support should signal a deeper correction down to 1.5335, while a recovery above 1.5460 on the other hand, should favor a steadier advance towards the 1.5500 price zone in the short term."