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3 Apr 2014
GBP/USD to face downward pressure with 1.6510 eyed - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that GBP/USD is under pressure this Thursday, weighted by a weaker than expected UK Services PMI down to 57.6, the lowest level since June 2013.
Key Quotes
“The pair saw a quick kneejerk down to 1.6595, and struggles to hold above the 1.6600 level after the news, albeit market is again frozen ahead of ECB decision in a couple hours.”
“The 4 hours chart shows price resting right above a flat 200 EMA, while indicators breached below their midlines and accelerate lower; 20 SMA in the same time frame is now offering dynamic resistance around 1.6645, with the pair finding sellers on spikes up to 1.6660 earlier today.”
“ECB decision may not affect the pair directly, but will surely weight on it: a price acceleration below 1.6590 should open doors for a quick test of 1.6550 while below this last the pair may extend its slide down to 1.6510 today.”
“On the other hand, 1.6660 seems quite tough so it won’t be an easy level to take yet if it does, next resistance and probable bullish target stands at 1.6720 area, where several intraday highs converge with a descendant trend line coming from 1.6821 this year high.”
Key Quotes
“The pair saw a quick kneejerk down to 1.6595, and struggles to hold above the 1.6600 level after the news, albeit market is again frozen ahead of ECB decision in a couple hours.”
“The 4 hours chart shows price resting right above a flat 200 EMA, while indicators breached below their midlines and accelerate lower; 20 SMA in the same time frame is now offering dynamic resistance around 1.6645, with the pair finding sellers on spikes up to 1.6660 earlier today.”
“ECB decision may not affect the pair directly, but will surely weight on it: a price acceleration below 1.6590 should open doors for a quick test of 1.6550 while below this last the pair may extend its slide down to 1.6510 today.”
“On the other hand, 1.6660 seems quite tough so it won’t be an easy level to take yet if it does, next resistance and probable bullish target stands at 1.6720 area, where several intraday highs converge with a descendant trend line coming from 1.6821 this year high.”