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14 Apr 2015
GBP/USD: Bears looking for weak UK CPI's - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted the conditions surrounding GBP/USD overnight leading in to the Asian shift.
Key Quotes:
"The GBP/USD pair posted a fresh multi-year low of 1.4565 at the beginning of the European session, drove by broad dollar demand from where the pair bounced to close the day into the green and at a daily high in the 1.4670 region."
"The UK will release several inflation-related figures on Tuesday, expected overall weak, which therefore should prevent the British Pound from advancing further."
"The short term picture favors the upside, as the 1 hour chart shows that the price advanced its 20 SMA that slowly grinds higher, whilst the Momentum indicator heads north well above the 100 level, and the RSI also advances around 60."
"In the 4 hours chart the 20 SMA heads strongly lower, offering now dynamic resistance around 1.4710, whilst the indicators bounced sharply from oversold levels, but remain in negative territory."
"If the price manages to advance above the mentioned 1.4710 level, the pair could extend towards next resistance, formed by former intraday lows in the 1.4750 price zone, while only beyond this last the pair can recover its upward potential for the upcoming sessions."
Key Quotes:
"The GBP/USD pair posted a fresh multi-year low of 1.4565 at the beginning of the European session, drove by broad dollar demand from where the pair bounced to close the day into the green and at a daily high in the 1.4670 region."
"The UK will release several inflation-related figures on Tuesday, expected overall weak, which therefore should prevent the British Pound from advancing further."
"The short term picture favors the upside, as the 1 hour chart shows that the price advanced its 20 SMA that slowly grinds higher, whilst the Momentum indicator heads north well above the 100 level, and the RSI also advances around 60."
"In the 4 hours chart the 20 SMA heads strongly lower, offering now dynamic resistance around 1.4710, whilst the indicators bounced sharply from oversold levels, but remain in negative territory."
"If the price manages to advance above the mentioned 1.4710 level, the pair could extend towards next resistance, formed by former intraday lows in the 1.4750 price zone, while only beyond this last the pair can recover its upward potential for the upcoming sessions."