GBP/USD neutral/bearish – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the GBP/USD pair advanced up to 1.5505 with the European opening, but once again failed to sustain gains beyond the critical level, and eased down to the 1.5430 region by the end of the US session.

Key Quotes:

“The Bank of England Governor, Mark Carney, offered testimony about the Central Bank Bill before the Treasury Select Committee, in London, but he made no references to the UK economic policy, having a null effect on the Pound.

Repeated failure around the 1.5500 level may discourage buyers, and result in a downward correction over the upcoming sessions. In the meantime, the short term technical picture shows an increasing bearish potential, as in the 1 hour chart, the price is extending below its 20 SMA, whilst the technical indicators head lower below their mid-lines.

In the 4 hours chart, the technical stance is neutral-to-bearish, with the price now below a horizontal 20 SMA, and the technical indicators turning south around their mid-lines. October 15th daily low at 1.5415 is the support to break to confirm additional intraday declines, with the next support at 1.5380 the 50% retracement of the latest weekly …read more

Source:: FX Street