Monday, October 12, 2015

GBP/USD bears are lurking

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5320 with a high of 1.5325 and a low of 1.5313.

GBP/USD had been closing higher on three consecutive closes, but was a poor show to end last week and was the second weakest currency to the greenback out of the majors. The 200 DMA is not letting the bulls run off over the hill and pulls on the price like a magnet. This is located at 1.5319.

The week ahead comes with plenty of US data including retails sales and CPI's while the UK will shed some light on its own CPI and employment numbers. We recently heard from BoE's Carney last week who said that he still feels that the conditions are right to consider raising rates around the turn of this year while the market has started to price out this scenario with expectations for further down the line.

GBP/USD neutral above 20 DMA/bearish

GBP/USD is struggling on the 1.53 handle to offer a convincing bullish tone while the pivot is 1.5332 and spot trades below at the start of the week. RSI (14) has turned below 50 and the major lacks momentum albeit supported above the 20 DMA at 1,5295.

Meanwhile, Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart the price is struggling to overcome its 200 EMA, whilst the 20 SMA maintains a strong bullish slope a handful of pips below the current level, and the technical indicators head lower around their mid-lines, increasing chances of a downward move on a break below 1.5300.
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