GBP/USD: 1.5490 is key resistance – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound corrected higher against the greenback last week, but the pair failed to retake the 1.5500 level, closing at 1.5428.

Key Quotes:

“BOE’s inflation report showed that policy makers expect inflation to remain near zero during the upcoming months, although expectations were revised higher from 2.0% to 2.2%. Pound’s rally lost steam afterwards, but the GBP/USD pair hold above the 38.2% retracement of its latest daily decline around 1.5410, now the immediate support.”

“Technically, the daily chart shows that the price is actually converging with a still bearish 20 SMA, whilst the RSI indicator lost upward strength around 49 and the Momentum indicator heads higher, but below the 100 level, all of which limits chances of a stronger advance.”

“In the 4 hours chart, the price failed to advance beyond the 200 EMA, currently around 1.5470, whilst the technical indicators are horizontal above their mid-lines, losing the upward strength seem earlier this week. At this point, the price needs to extend beyond 1.5490, the 50% retracement of the mentioned slide, to recover further over the upcoming sessions.”
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Source:: FX Street