8 Jul 2015
GBP/USD diving towards 1.5200 – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, sees downside potential for GBP/USD towards 1.5200 area post a break below 1.5320/30.
Key Quotes
“The 4 hours chart shows that the 20 SMA has extended further lower above the current price, whilst the technical indicators have resumed their declines after a limited upward corrective movement from oversold territory, and with the RSI heading lower now around 25, all of which suggests the GBP remains vulnerable to additional declines. The immediate support stands at 1.5370, where the pair presents several intraday highs and lows from early June, which means a break below it should lead to additional declines towards the 1.5320/30 region, in route to complete a full 100% retracement at 1.5200.”
“Recoveries up to 1.5475, the mentioned Fibonacci level, should be seen as selling opportunities, with only a recovery above 1.5520 bringing some relief to the British currency.”
Key Quotes
“The 4 hours chart shows that the 20 SMA has extended further lower above the current price, whilst the technical indicators have resumed their declines after a limited upward corrective movement from oversold territory, and with the RSI heading lower now around 25, all of which suggests the GBP remains vulnerable to additional declines. The immediate support stands at 1.5370, where the pair presents several intraday highs and lows from early June, which means a break below it should lead to additional declines towards the 1.5320/30 region, in route to complete a full 100% retracement at 1.5200.”
“Recoveries up to 1.5475, the mentioned Fibonacci level, should be seen as selling opportunities, with only a recovery above 1.5520 bringing some relief to the British currency.”