3 Feb 2014
Flash: GBP/USD ready to break below 1.6300 - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst comments that the pound takes no pause in its fall against the greenback this Monday, following Markit Manufacturing PMI down to 56.7 in Jan from 57.2 the previous month.
Key Quotes
“Stocks remain on a tear, falling after disappointing Chinese figures past Asian session, maintaining intact the negative risk sentiment among investors.”
“As for the technical picture, the 4 hours chart shows price accelerated below its 200 EMA after being capped below it since the day started, while indicators head strongly south near oversold levels, with no signs of reversing current bearish momentum: the 1.6300 figure stands as immediate short term support, and once broken, the pair has little in the way towards the 1.6250 area, next strong static support level.”
“A break below this last seems unlikely for today, albeit next support then comes at 1.6210.”
“With no technical signs of a possible recovery, price may pullback up to 1.6370 area without losing the negative tone. Only above this last price could attempt a recovery towards 1.6430, mentioned 200 EMA.”
Key Quotes
“Stocks remain on a tear, falling after disappointing Chinese figures past Asian session, maintaining intact the negative risk sentiment among investors.”
“As for the technical picture, the 4 hours chart shows price accelerated below its 200 EMA after being capped below it since the day started, while indicators head strongly south near oversold levels, with no signs of reversing current bearish momentum: the 1.6300 figure stands as immediate short term support, and once broken, the pair has little in the way towards the 1.6250 area, next strong static support level.”
“A break below this last seems unlikely for today, albeit next support then comes at 1.6210.”
“With no technical signs of a possible recovery, price may pullback up to 1.6370 area without losing the negative tone. Only above this last price could attempt a recovery towards 1.6430, mentioned 200 EMA.”