5 Jan 2016
GBP/USD attempting to stabalise in strong downside
FXStreet (Guatemala) - GBP/USD is consolidating the downside and attempting to make a recovery that is squashed by the markets appetite for dollars in a risk-off theme.
The pound lost its shine at the end of 2015 as markets priced out the idea of a BoE hike while the divergence between the US and UK started to shine through the cracks in the UK's economy.
GBP/USD downside fundamentals at play
There are also nerves around the forthcoming referendum over Europe and the possibility of a Brexit in June this year. This week we await the US jobs data in the Nonfarm Payrolls as the key driver out
Technically, Karen Jones , chief analyst at Commerzbank explained that, "currently intraday Elliott counts suggesting that rallies are likely to remain capped by 1.4990 – for now we will take profit on our shorts. Key short term resistance is the 1.5273 resistance line and the 200 day ma at 1.5323".
The pound lost its shine at the end of 2015 as markets priced out the idea of a BoE hike while the divergence between the US and UK started to shine through the cracks in the UK's economy.
GBP/USD downside fundamentals at play
There are also nerves around the forthcoming referendum over Europe and the possibility of a Brexit in June this year. This week we await the US jobs data in the Nonfarm Payrolls as the key driver out
Technically, Karen Jones , chief analyst at Commerzbank explained that, "currently intraday Elliott counts suggesting that rallies are likely to remain capped by 1.4990 – for now we will take profit on our shorts. Key short term resistance is the 1.5273 resistance line and the 200 day ma at 1.5323".