13 Jan 2015
GBP/USD has challenges ahead this week - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD pair approached the 1.5200 level a couple of times during the last 24 hours, ending the day a few pips below it and with a mild positive tone in the short term.
Key Quotes:
"The Pound however will face a huge challenge early Tuesday, in the form of inflation readings: the UK will release both CPI and PPI numbers early on the day, alongside with local retail price index".
"Consensus suggests CPI may have ticked higher in December, something that may give the local currency a boost particularly against the USD considering the pair has been in a steady 6-week decline".
"Anyway and from a technical point of view, the 1 hour chart shows that the price holds near its daily high of 1.5193 and above a flat 20 SMA, while indicators stand directionless above their midlines".
"In the 4 hours chart the price also holds above its 20 SMA, now flat around 1.5100 providing short term support, while indicators continue to head higher above their midlines, supporting further advances on a break above 1.5220 strong static resistance level".
Key Quotes:
"The Pound however will face a huge challenge early Tuesday, in the form of inflation readings: the UK will release both CPI and PPI numbers early on the day, alongside with local retail price index".
"Consensus suggests CPI may have ticked higher in December, something that may give the local currency a boost particularly against the USD considering the pair has been in a steady 6-week decline".
"Anyway and from a technical point of view, the 1 hour chart shows that the price holds near its daily high of 1.5193 and above a flat 20 SMA, while indicators stand directionless above their midlines".
"In the 4 hours chart the price also holds above its 20 SMA, now flat around 1.5100 providing short term support, while indicators continue to head higher above their midlines, supporting further advances on a break above 1.5220 strong static resistance level".