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12 Mar 2014
Flash: GBP/USD: Fresh lows, more at sight – FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet notes that the GBP/USD broke below key 1.6600 support and as below this latter, the pair would remain vulnerable and could extend its decline to 1.6510.
Key Quotes
"Majors trade in between yesterday's ranges little changed from Tuesday update albeit dollar grinds higher mostly on sentiment: concerns over Chinese growth had been the main focus this week in absence of other economic news. What started as a rumor was finally confirmed yesterday as the country experienced its first-ever corporate debt default, and the idea of more coming is what leads the mild risk off ruling the forex board".
"For weakened GBP/USD, that translates into a lower low, with the pair flirting with 1.6580 at the time being, and maintaining the bearish tone in its 4 hours chart, as 20 SMA gains bearish slope above current price and indicators turned back south after correcting oversold readings".
"Price has not only accelerated below the key Fibonacci support around 1.6600, but is also breaking through its 200 EMA in the mentioned time frame, further sign of a bearish continuation: the pair will likely extend now towards 1.6550 as long as pullbacks fail to regain 1.6600, with a break below it pointing for an approach to 1.6510".
"A price acceleration above 1.6610 should see price advance up to 1.6650 strong static resistance, but sellers will likely jump in around it, preventing the pair from advancing further".
Key Quotes
"Majors trade in between yesterday's ranges little changed from Tuesday update albeit dollar grinds higher mostly on sentiment: concerns over Chinese growth had been the main focus this week in absence of other economic news. What started as a rumor was finally confirmed yesterday as the country experienced its first-ever corporate debt default, and the idea of more coming is what leads the mild risk off ruling the forex board".
"For weakened GBP/USD, that translates into a lower low, with the pair flirting with 1.6580 at the time being, and maintaining the bearish tone in its 4 hours chart, as 20 SMA gains bearish slope above current price and indicators turned back south after correcting oversold readings".
"Price has not only accelerated below the key Fibonacci support around 1.6600, but is also breaking through its 200 EMA in the mentioned time frame, further sign of a bearish continuation: the pair will likely extend now towards 1.6550 as long as pullbacks fail to regain 1.6600, with a break below it pointing for an approach to 1.6510".
"A price acceleration above 1.6610 should see price advance up to 1.6650 strong static resistance, but sellers will likely jump in around it, preventing the pair from advancing further".