2 Jul 2015
GBP/USD: Bears battered the bulls - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the British Pound finally broke its range against the greenback, and the GBP/USD pair fell down to a fresh 2-week low of 1.5587.
Key Quotes:
"The catalyst for the decline was the UK Markit Manufacturing PMI showing that the manufacturing sector fell to 51.4 in June, the weakest reading since April 2013, mostly because of limited export demand from Europe."
"The news sent the pair down to 1.5645, the 38.2% retracement of the latest bullish run, finally breaking below it after the strong US ADP report. The pair seems poised to extend its decline, trading a few pips above the mentioned low by the end of the day and with the 1 hour chart showing that the technical indicator hold in extreme oversold levels, whilst the 20 SMA turned south well above the current price."
"In the 4 hours chart the technical indicators have finally left neutral territory, and maintain their strong bearish slopes well into negative territory, favoring a test of 1.5550, the 50% retracement of the same rally and the 200 EMA in this last time frame."
Key Quotes:
"The catalyst for the decline was the UK Markit Manufacturing PMI showing that the manufacturing sector fell to 51.4 in June, the weakest reading since April 2013, mostly because of limited export demand from Europe."
"The news sent the pair down to 1.5645, the 38.2% retracement of the latest bullish run, finally breaking below it after the strong US ADP report. The pair seems poised to extend its decline, trading a few pips above the mentioned low by the end of the day and with the 1 hour chart showing that the technical indicator hold in extreme oversold levels, whilst the 20 SMA turned south well above the current price."
"In the 4 hours chart the technical indicators have finally left neutral territory, and maintain their strong bearish slopes well into negative territory, favoring a test of 1.5550, the 50% retracement of the same rally and the 200 EMA in this last time frame."