24 Mar 2014
GBP/USD heading toward 1.6250 - FXStreet
Valeria Bednarik, FXStreet Chief Analyst comments that the pound is suffering from general market pessimism triggered by data, starting with Chinese Markit PMI past Asian session that dropped down to 48.1, spurring concerns over local growth.
Key Quotes
“Early Europe, local PMIs also disappointed, with EU and German ones dropping beyond expected. The GBP/USD retraces towards its daily low around 1.6470 and key midterm support as per being the 61.8% retracement of the 1.6251/1.6821 daily bullish run.”
“Furthermore, the 4 hours chart shows 20 SMA extended its bearish slope, now offering dynamic resistance around 1.6530, while indicators aim higher from oversold readings yet hold in negative territory: overall, dollar bulls seem to be in control, particularly when it comes to European currencies.”
“Further falls beyond mentioned 1.6470 should see price extending towards 1.6420 price zone, where the pair presents several intraday highs and lows from early February. A break below this last will find next support around 1.6380, while a daily close around this last exposes 1.6250 for the upcoming sessions.”
“Not likely, a recovery above 1.6530 may see the pair extending up to 1.6560/70 area, while above this last 1.6600 comes next, albeit chances are quite limited for today.”
Key Quotes
“Early Europe, local PMIs also disappointed, with EU and German ones dropping beyond expected. The GBP/USD retraces towards its daily low around 1.6470 and key midterm support as per being the 61.8% retracement of the 1.6251/1.6821 daily bullish run.”
“Furthermore, the 4 hours chart shows 20 SMA extended its bearish slope, now offering dynamic resistance around 1.6530, while indicators aim higher from oversold readings yet hold in negative territory: overall, dollar bulls seem to be in control, particularly when it comes to European currencies.”
“Further falls beyond mentioned 1.6470 should see price extending towards 1.6420 price zone, where the pair presents several intraday highs and lows from early February. A break below this last will find next support around 1.6380, while a daily close around this last exposes 1.6250 for the upcoming sessions.”
“Not likely, a recovery above 1.6530 may see the pair extending up to 1.6560/70 area, while above this last 1.6600 comes next, albeit chances are quite limited for today.”