FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair enjoyed some short-lived demand during the European morning, after the release of better-than-expected data in the UK.
Key Quotes:
"Markit reported that growth regained momentum in October, as the manufacturing sector recorded its best month of output since June 2014, with the final October manufacturing PMI resulting at 55.5, compared to a first estimate of 51.5."
"The pair advanced up to 1.5496, but once again failed around the 1.5500 figure, and ended the day in the red, a few pips above the 1.5400 level. The BoE will have its monetary policy meeting this week, alongside with the release of the inflation report, and the market will be looking there for clues on any date for an upcoming rate hike."
"In the meantime, the short term picture favors additional declines, as in the 1 hour chart, the price is developing below its 20 SMA, whilst the technical indicators present tepid bearish slopes below their mid-lines. In the 4 hours chart, the technical indicators are retreating from overbought territory, but the 20 SMA maintains a sharp bullish slope below the current level, indicating limited slides ahead for the pair."
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