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22 Apr 2016
GBP/USD: a chop overnight, 1.4290 support is key - FXStreet
Valeria Bednarik, chief analyst at FXStreet noted that the Sterling rallied to a fresh 3-week high against the greenback this Thursday, in spite of disappointing UK retail sales readings in March.
Key Quotes:
"Headline retail sales fell by 1.3% and the core reading was down 1.6%, compared to February, adding to the generally downbeat tone of UK data released earlier this week."
"The GBP/USD pair traded as high as 1.4439 within the ECB's press conference, to finally plunge to near 1.4300 ahead of the US close, holding nearby at the end of the day. The pair has failed for a third consecutive day to settle above the daily descendant trend line coming from February high, quite disappointing for bulls, which may be forced to continue taking profits out of the table this Friday."
"From a technical point of view, the pair is now biased lower".
"In the 4 hours chart, the price is below a still bullish 20 SMA, whilst the Momentum indicator heads south below its 100 level, and the RSI also turned lower, and is aiming to break below its mid-line."
"At this point, the pair needs to extend below 1.4290, the immediate support to confirm a downward continuation that can see the price approaching the 1.4200 level during the upcoming 24 hours."
Key Quotes:
"Headline retail sales fell by 1.3% and the core reading was down 1.6%, compared to February, adding to the generally downbeat tone of UK data released earlier this week."
"The GBP/USD pair traded as high as 1.4439 within the ECB's press conference, to finally plunge to near 1.4300 ahead of the US close, holding nearby at the end of the day. The pair has failed for a third consecutive day to settle above the daily descendant trend line coming from February high, quite disappointing for bulls, which may be forced to continue taking profits out of the table this Friday."
"From a technical point of view, the pair is now biased lower".
"In the 4 hours chart, the price is below a still bullish 20 SMA, whilst the Momentum indicator heads south below its 100 level, and the RSI also turned lower, and is aiming to break below its mid-line."
"At this point, the pair needs to extend below 1.4290, the immediate support to confirm a downward continuation that can see the price approaching the 1.4200 level during the upcoming 24 hours."