GBP/USD: Downside Limited, Target Above 1.4515 - FXStreet
Valeria Bednarik,
chief analyst at FXStreet explained that the GBP/USD pair fell down to
1.4438 this Thursday, but dips in the pair ever since the day started
have sent the pair quickly back towards the 1.4500 mark, with the pair
unable to clearly break below the 50% retracement of the latest bullish
run.
Key Quotes:
"Data coming from the
UK continued disappointing, as the April Markit services PMI came in at
52.3, below previous and expected, and the weakest reading in over three
years. The 1 hour chart shows that the price is now aiming to recover
above a flat 20 SMA, whilst the technical indicators aim higher within
neutral territory, lacking enough strength to confirm a stronger
advance."
"In the 4 hours chart, the Momentum indicator continues
heading south near oversold territory, while the 20 SMA extended its
decline above the current level, maintaining the risk towards the
downside. The RSI indicator, however, bounced modestly, limiting the
downside at the time being. The 38.2% retracement of the same rally
stands at 1.4515, the level to overcome to see the pair advancing
further."
