5 Mar 2015
GBP/USD's overnight drop - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that
the GBP/USD pair fell down to 1.5258, a fresh 3-week low, weighed by dollar momentum, and slightly weaker than expected Markit Services PMI in the UK.
Key Quotes:
"The services' sector in the United Kingdom eased to 56.7 in February, from a previous reading of 57.2 and an expected 57.5."
"Nevertheless, a sub-component of the report showed that wages grew in the UK, which if its continues to be sustainable, will end up being a positive long term support for the Pound."
"Technically and in the short term, the downside is still favored, as the 1 hour chart shows that the price consolidates near the daily low, with the 20 SMA maintaining a strong bearish slope well above the current price, and the technical indicators losing their bearish strength in overbought territory, although far from suggesting an upward correction."
"In the 4 hours chart, the price accelerated below the 200 EMA, breaking below the critical level for the first time since early February. In the same time frame, the technical indicators maintain their bearish slopes well into negative territory, supporting a downward continuation if the 1.5250 static support level, gives up."
the GBP/USD pair fell down to 1.5258, a fresh 3-week low, weighed by dollar momentum, and slightly weaker than expected Markit Services PMI in the UK.
Key Quotes:
"The services' sector in the United Kingdom eased to 56.7 in February, from a previous reading of 57.2 and an expected 57.5."
"Nevertheless, a sub-component of the report showed that wages grew in the UK, which if its continues to be sustainable, will end up being a positive long term support for the Pound."
"Technically and in the short term, the downside is still favored, as the 1 hour chart shows that the price consolidates near the daily low, with the 20 SMA maintaining a strong bearish slope well above the current price, and the technical indicators losing their bearish strength in overbought territory, although far from suggesting an upward correction."
"In the 4 hours chart, the price accelerated below the 200 EMA, breaking below the critical level for the first time since early February. In the same time frame, the technical indicators maintain their bearish slopes well into negative territory, supporting a downward continuation if the 1.5250 static support level, gives up."