GBP/USD: holding a bullish tone – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair closed the week with gains, although on Friday gave back a good chunk of them, edging down around 130 pips from its weekly high set at 1.5657.

Key Quotes:

“Overall, the Pound maintains a bullish tone, supported by positive macroeconomic outcomes that point for a steady economic recovery, and a soon to come rate hike, as anticipated by BOE’s officers during the past months. Nevertheless, the pair is trading back below the 61.8% retracement of its latest weekly decline, which stands at 1.5560, while the daily indicators have lost their upward strength and turned lower, still holding above their mid-lines, all of which suggest the decline can extend this Monday, particularly if the pair extends its decline below 1.5480, the 50% retracement of the same rally.”

“Shorter term, the 4 hours chart shows that that the Momentum indicator turned sharply lower from overbought territory and is about to cross its mid-line towards the downside, whilst the RSI indicator also turned south from overbought levels and heads lower around 53, supporting the daily perspective. The 20 SMA in this last time frame, heads higher around the mentioned Fibonacci …read more

Source:: FX Street