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7 Jan 2015
GBP/USD made fresh 17 month low of 1.5151 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet, explained that GBP/USD set a fresh 17-month low of 1.5151.
Key Quotes:
“Cable set a fresh 17-month low of 1.5151 aided by weaker UK data: local Markit Services PMI for December came out at 51.6, the smallest growth in almost two years. Markit PMI reports indicated that Britain’s economy grew 0.5% in the fourth quarter, down from 0.7% in the previous three months”.
"The pair broke below the 1.5200 figure with the news and was unable to regain it, trading in a tight range for most of the US session. From a technical perspective, the pair is closing the day a few pips below the long term ascendant trend line coming from September 2009 low at 1.3501 and while the confirmation did not occurred yet, the risk to the downside has increased exponentially”.
“Shorter term, the 1 hour chart shows that the 20 SMA extended its decline down to the 1.5200 level, reinforcing the strength of the intraday resistance, whilst indicators turned flat well into negative territory after correcting oversold readings”.
“In the 4 hours chart, indicators are showing signs of exhaustion in oversold readings while 20 SMA maintains a strong bearish slope well above current price, all of which continues to favor a break lower".
Key Quotes:
“Cable set a fresh 17-month low of 1.5151 aided by weaker UK data: local Markit Services PMI for December came out at 51.6, the smallest growth in almost two years. Markit PMI reports indicated that Britain’s economy grew 0.5% in the fourth quarter, down from 0.7% in the previous three months”.
"The pair broke below the 1.5200 figure with the news and was unable to regain it, trading in a tight range for most of the US session. From a technical perspective, the pair is closing the day a few pips below the long term ascendant trend line coming from September 2009 low at 1.3501 and while the confirmation did not occurred yet, the risk to the downside has increased exponentially”.
“Shorter term, the 1 hour chart shows that the 20 SMA extended its decline down to the 1.5200 level, reinforcing the strength of the intraday resistance, whilst indicators turned flat well into negative territory after correcting oversold readings”.
“In the 4 hours chart, indicators are showing signs of exhaustion in oversold readings while 20 SMA maintains a strong bearish slope well above current price, all of which continues to favor a break lower".