Monday, October 19, 2015

GBP/USD: 1.5380 buying interest - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the British Pound gave back some ground on Friday, but closed the week with solid gains against the greenback, around 1.5440.

Key Quotes:

"The GBP turned sharply higher after local data showed that while inflation turned negative in September, wages surged. The combination of both may result in a boost in consumption for the upcoming months, which at the end will mean a continued improvement in the economic situation, and lead for a rate hike. There will be no relevant fundamental releases in the UK until next Thursday, when Britain will publish its Retail Sales data for September. In the meantime, the daily chart shows that the price is a couple of pips below the 61.8% retracement of its latest daily fall, whilst the technical indicators have lost their upward strength, but hold well into positive territory, and that the price is far above its 20 SMA."

"In the 4 hours chart, the Momentum indicator has turned sharply lower from overbought levels, and is about to cross its mid-line towards the downside, although the 20 SMA maintains a strong bullish slope around 1.5420, whilst the RSI indicator heads slightly lower around 55. A downward corrective movement may extend down to 1.5380, the 50% retracement of the mentioned rally, where buying interest will likely surge."
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