GBP/USD: in a strong bearish slope of technicals- FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the dominant weakness of the British Pound has sent the GBP/USD pair down to a fresh 4-month low of 1.5161.

Key Quotes:

“…maintaining its strong bearish tone, despite having been steadily on the downside ever since peaking at 1.5877 last August 25th.”

“During the upcoming days, the UK will release its NIESR GDP estimate, whilst the BOE will have its monthly economic policy next Thursday, both events set to determinate if the GBP can extend its decline, despite being extremely oversold.”

“Daily basis, the technical indicators maintain their strong bearish slopes in oversold territory, whilst the 20 SMA heads lower far above the current level, reflecting the strong negative momentum in the pair. Shorter term, the 4 hours chart shows that the 20 SMA continues to cap the upside, currently offering a dynamic resistance around 1.5260, whilst the Momentum indicator heads lower well below its 100 level and the RSI hovers around 26, all of which supports additional declines towards the 1.5000 figure.”
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Source:: FX Street