9 Mar 2015
GBP/USD: fresh selling pressure anticipated at 1.5090/1..51 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, explains that GBP/USD is likely to be sold on rallies, anticipating a fresh sell-off towards 1.5090/1.51 levels to drag the pair towards 1.50 levels.
Key Quotes
“The GBP/USD fell sharply after a strong payrolls report in the US increased speculation that the Federal Reserve would hike rates before Bank of England(BOE). Throughout last week, the pair ignored the upbeat economic data in the UK, by largely tracking the move in the EUR/USD pair.”
“With no major data due out of the UK today, the pair is likely to move in line with the EUR/USD pair. Still, the pair is likely to outperform EUR/USD, as the BOE too, is expected to raise rates this year.”
“Consequently, the EUR/GBP is likely to be sold on rallies.”
“The 4-hour is deep into the oversold territory, while the hourly RSI has recovered from the oversold region. Thus, we could see the pair test 1.5091 (76.4% retracement of 1.4949-1.5550). However, the pair is likely to be sold on rallies as well.”
“Despite the sharp sell-off the daily RSI has held above the oversold region at 33.65, indicating more room for weakness.”
“Thus, a fresh selling pressure can be anticipated around 1.5090-1.5100 levels. A fresh sell-off from the said levels could drive the pair lower to 1.50 levels.”
Key Quotes
“The GBP/USD fell sharply after a strong payrolls report in the US increased speculation that the Federal Reserve would hike rates before Bank of England(BOE). Throughout last week, the pair ignored the upbeat economic data in the UK, by largely tracking the move in the EUR/USD pair.”
“With no major data due out of the UK today, the pair is likely to move in line with the EUR/USD pair. Still, the pair is likely to outperform EUR/USD, as the BOE too, is expected to raise rates this year.”
“Consequently, the EUR/GBP is likely to be sold on rallies.”
“The 4-hour is deep into the oversold territory, while the hourly RSI has recovered from the oversold region. Thus, we could see the pair test 1.5091 (76.4% retracement of 1.4949-1.5550). However, the pair is likely to be sold on rallies as well.”
“Despite the sharp sell-off the daily RSI has held above the oversold region at 33.65, indicating more room for weakness.”
“Thus, a fresh selling pressure can be anticipated around 1.5090-1.5100 levels. A fresh sell-off from the said levels could drive the pair lower to 1.50 levels.”