12 Feb 2015
GBP/USD struggles around its 20 SMA - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that cable got a nice boost in the European morning, surging up to 1.5298 as local share markets opened with a strong note.
Key Quotes:
"But the pair gave up its gains on dollar self strength, entering negative territory as US traders kicked in. Consolidating above the 38.2% retracement of its latest daily bullish run around 1.5210, the pair will have to face the UK Quarterly Inflation Report this Thursday, where BOE's Governor Mark Carney will respond not only about the inflationary situation, but about the overall economic health."
"The macroeconomic data has been showing a tepid improvement lately, with headline inflation lower, but the core reading up in Jan, whilst the employment sector continued to improve, all of which should anticipate a mild hawkish tone coming from the Central Bank, and therefore support the Pound."
"From a technical point of view, the pair holds within latest range, and if there's a currency that can beat dollar strength these days, that's the Pound. The 1 hour chart shows a mild positive tone with indicators aiming higher above their mid-lines, although price is now developing below its 20 SMA."
"In the 4 hours chart the Momentum indicator stands above 100 while RSI hovers around 50, and the price struggles around its 20 SMA, maintaining a quite neutral technical stance. A break through the 1.5300 level is now required to confirm a new leg higher towards next month highs near the 1.5370 level."
Key Quotes:
"But the pair gave up its gains on dollar self strength, entering negative territory as US traders kicked in. Consolidating above the 38.2% retracement of its latest daily bullish run around 1.5210, the pair will have to face the UK Quarterly Inflation Report this Thursday, where BOE's Governor Mark Carney will respond not only about the inflationary situation, but about the overall economic health."
"The macroeconomic data has been showing a tepid improvement lately, with headline inflation lower, but the core reading up in Jan, whilst the employment sector continued to improve, all of which should anticipate a mild hawkish tone coming from the Central Bank, and therefore support the Pound."
"From a technical point of view, the pair holds within latest range, and if there's a currency that can beat dollar strength these days, that's the Pound. The 1 hour chart shows a mild positive tone with indicators aiming higher above their mid-lines, although price is now developing below its 20 SMA."
"In the 4 hours chart the Momentum indicator stands above 100 while RSI hovers around 50, and the price struggles around its 20 SMA, maintaining a quite neutral technical stance. A break through the 1.5300 level is now required to confirm a new leg higher towards next month highs near the 1.5370 level."