GBP/USD: downside favoured – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair turned higher this Wednesday, but faltered ahead of the 1.4900 figure, retreating from a daily high set at 1.4899.

Key Quotes:

Holding into gains, the Pound advanced, despite the UK Q3 GDP was finally revised down to 2.1% y/y from the expected reading of 2.3%.

“The UK also reported Q3 current account at -GBP17.5 B vs. -GBP21.5B consensus. The intraday upward move came after a decline of eight days in-a-row and ahead of the holidays, clearly being triggered by profit taking and position adjustments.

From a technical point of view, the downside is still favored, as in the 4 hours chart, the pair is unable to advance above its 20 SMA, while the technical indicators have recovered from overbought territory and continue heading north, but below their mid-lines.

The level to watch during the upcoming sessions is the 1.4950 resistance, as only a steady advance above it would lead to a more steadier recovery during the following days.”
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Source:: FX Street