According to Valeria Bednarik, Chief Analyst at FXStreet, weaker than expected UK inflation results has led GBP/USD to drop lower, with the pair now approaching the 18th month low at 1.5033.
Key Quotes
The GBP/USD pair pressures a 3-day low of 1.5076 following weaker than expected inflation readings in the UK. For December inflation remained flat monthly basis, whilst it grew by 0.5% in the year to December 2014, down from 1.0% in November.”
“The Cable approaches the 18 month low posted last week at 1.5033 following the news, and WTI crude futures extending their slide below $ 45 a barrel are surely not helping.”
“From a technical point of view, the 4 hours chart shows a strong downward acceleration through a flat 20 SMA, whilst indicators turned strongly south and are now breaking their midlines, pointing for some further declines.”
“Some stops should lay below 1.5070, and if trigger, the pair may post a quick slide towards the mentioned 1.5030 level, with a break below it exposing the pair to a test of the 1.4980/90 price zone.“
“Short term sellers are now around 1.5110, so it will take a steady recovery above this last to deny the falls and see the pair attempting a recovery towards the 1.5150 price zone.”
Key Quotes
The GBP/USD pair pressures a 3-day low of 1.5076 following weaker than expected inflation readings in the UK. For December inflation remained flat monthly basis, whilst it grew by 0.5% in the year to December 2014, down from 1.0% in November.”
“The Cable approaches the 18 month low posted last week at 1.5033 following the news, and WTI crude futures extending their slide below $ 45 a barrel are surely not helping.”
“From a technical point of view, the 4 hours chart shows a strong downward acceleration through a flat 20 SMA, whilst indicators turned strongly south and are now breaking their midlines, pointing for some further declines.”
“Some stops should lay below 1.5070, and if trigger, the pair may post a quick slide towards the mentioned 1.5030 level, with a break below it exposing the pair to a test of the 1.4980/90 price zone.“
“Short term sellers are now around 1.5110, so it will take a steady recovery above this last to deny the falls and see the pair attempting a recovery towards the 1.5150 price zone.”
