GBP/USD: bearish bias; 1.4270 is key support – FXStreet

By FXStreet Valeria Bednarik, chief analyst at FXStreet explained that the Pound recovered some ground against its American rival this Monday, advancing up to 1.4414 before settling around the 1.4400 mark by the end of the US session.

Key Quotes:

“There were no data coming from the UK, although this Tuesday, the kingdom will release its PPI and CPI figures for April, generally expected to have worsen compared to March one’s.

Given that soft data has been a constant in the UK ever since the year started, disappointing figures should not be a surprise, but indeed will weigh on the local currency, and result in fresh lows for the GBP/USD pair.

The intraday recovery was not enough to change the negative technical tone, as in the 4 hours chart, the technical indicators have turned south within bearish territory, with the Momentum indicator reaching fresh monthly lows.

In the same chart, the price is stuck around a horizontal 20 SMA, and right below the 20 SMA, coming from above, with the two moving averages lacking directional strength, but maintaining the overall risk towards the downside, particularly on renewed selling interest below the 1.4270 level, the immediate support.”
For more information, read our latest <a target="_blank" rel="nofollow" …read more

Source:: FX Street