7 Jul 2015
GBP/USD breaks trendline; More downside ahead?
FXStreet (Córdoba) - The pound had the worst day in months against the US dollar on Tuesday and is about to end the day with several bearish signals.
GBP/USD breaks daily trendline
GBP/USD broke an uptrend line originated at April lows. The line offered support yesterday but today it was broken and favored an acceleration of the decline. Price consolidated below giving signals of weakness ahead.
Also the pound is about to post the first daily close below the daily 55-SMA since late April. The moving average offered support in May and June; currently stands at 1.5480. The pair bottomed at 1.5410 and then rebounded but so far unable to rise above 1.5450
Fed minutes and UK budget
From a fundamental perspective tomorrow could be a volatile day for the pair. During the European session, George Osborne, will present a new budget, the first full conservative budget in 20 years. Later, the Federal Reserve will release the minutes of it latest meeting.
GBP/USD breaks daily trendline
GBP/USD broke an uptrend line originated at April lows. The line offered support yesterday but today it was broken and favored an acceleration of the decline. Price consolidated below giving signals of weakness ahead.
Also the pound is about to post the first daily close below the daily 55-SMA since late April. The moving average offered support in May and June; currently stands at 1.5480. The pair bottomed at 1.5410 and then rebounded but so far unable to rise above 1.5450
Fed minutes and UK budget
From a fundamental perspective tomorrow could be a volatile day for the pair. During the European session, George Osborne, will present a new budget, the first full conservative budget in 20 years. Later, the Federal Reserve will release the minutes of it latest meeting.