29 Jan 2015
GBP/USD on way back to 1.5375 downtrend?
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5045 with a high of 1.5164 and a low of 1.5017 and down 0.72% on the day.
GBP/USD dropped 30 pips and recovered back into a sideways manner beneath the 1.5120 support that gave up on earlier trade. The pair has been in an otherwise upside corrective mode moving away from the 1.4910/1.4813 long term Fibonacci retracement and 2013 low. Karen Jones, chief analyst at Commerzbank explained that there is a large divergence of the daily RSI on this move to a move to a new low. "We would allow for a corrective rebound back towards the 1.5375 downtrend."
Fundamentally, analysts at TD Securities explained that lower oil prices will support UK domestic demand, but may also lead to a more unbalanced recovery. "With inflation remaining sub-1% through most of 2015, there is no urgency at all for the BoE to begin raising rates."
GBP/USD dropped 30 pips and recovered back into a sideways manner beneath the 1.5120 support that gave up on earlier trade. The pair has been in an otherwise upside corrective mode moving away from the 1.4910/1.4813 long term Fibonacci retracement and 2013 low. Karen Jones, chief analyst at Commerzbank explained that there is a large divergence of the daily RSI on this move to a move to a new low. "We would allow for a corrective rebound back towards the 1.5375 downtrend."
Fundamentally, analysts at TD Securities explained that lower oil prices will support UK domestic demand, but may also lead to a more unbalanced recovery. "With inflation remaining sub-1% through most of 2015, there is no urgency at all for the BoE to begin raising rates."