25 Jun 2015
GBP/USD: RSI headed lower and bears lurking - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained GBP/USD extended its decline down to 1.5666 daily basis, after faltering around the 1.5800 level earlier in the day.
Key Quotes:
"Having started the day with a positive tone, the pair was unable to extend beyond the critical level, following the release of the UK mortgage data, showing an increase up to 42.5K slightly below expectations of a 43.1K rise."
"The reading is supportive of a strong local economic recovery, and therefore should keep Pound slides limited. The pair was initially affected by renewed Grexit fears, later weighed by USD broad strength."
"Technically, the short term picture supports a downward continuation as in the 1 hour chart the price stands below its 20 SMA, whilst the technical indicators have resumed their declines after partially correcting oversold readings."
"In the 4 hours chart, the 20 SMA extends its decline, now offering a dynamic resistance around 1.5800, while the RSI indicator continues to head lower around 40, anticipating at least a test of 1.5650, the 38.2% retracement of the latest daily bullish run."
Key Quotes:
"Having started the day with a positive tone, the pair was unable to extend beyond the critical level, following the release of the UK mortgage data, showing an increase up to 42.5K slightly below expectations of a 43.1K rise."
"The reading is supportive of a strong local economic recovery, and therefore should keep Pound slides limited. The pair was initially affected by renewed Grexit fears, later weighed by USD broad strength."
"Technically, the short term picture supports a downward continuation as in the 1 hour chart the price stands below its 20 SMA, whilst the technical indicators have resumed their declines after partially correcting oversold readings."
"In the 4 hours chart, the 20 SMA extends its decline, now offering a dynamic resistance around 1.5800, while the RSI indicator continues to head lower around 40, anticipating at least a test of 1.5650, the 38.2% retracement of the latest daily bullish run."