GBP/USD neutral stance after recovery – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted and explained that the GBP/USD pair ended the day with some limited gains a few pips above the 1.5200 level, having set a lower low weekly basis at 1.5153 at the beginning of the European session, on the back of dollar’s strength.

Key Quotes:

“Both economies released their October inflation data, with the UK reporting that the consumer price index fell by 0.1% year on year, and rose 0.1% from September, in line with market’s expectations. Core inflation in the United Kingdom posted an annual rise of 1.1%, helping the Pound in bouncing from the mentioned low, albeit the numbers were not enough to restore investor’s confidence after the latest BOE’s economic policy announcement.

Technically, the 1 hour chart shows that the neutral stance prevails, given that the price is moving back and forth around a horizontal 20 SMA and the 38.2% retracement of its latest weekly decline, whilst the technical indicators have turned back lower after a tepid advance in positive territory.

In the 4 hours chart, the technical indicators remain stuck around their mid-lines, whilst the 20 SMA is also horizontal around the mentioned Fibonacci level, failing …read more

Source:: FX Street