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6 Jan 2015
UK growth shrinks, Pound falls – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, explains that the soft UK Services PMI, weakest in 2 years, led the Pound to continue its slide, which trades below 1.52 levels for the first time since August 2013.
Key Quotes
“The GBP/USD pair trades below the 1.5200 level for the first time since August 2013, extending its slide on the back of UK Services PMI, down to 55.8 the least grow in almost 2 years.”
“The pair accumulates and over 400 pips’ slide during the last 3 days which leaves intraday technical readings in extreme oversold levels, but there’s nothing suggesting the pair may change course.”
“The 4 hours chart shows that the latest candle opened below the long term ascendant trend line coming from 1.3501, and while is a bit too early to confirm the break, the downward risk has increased sharply. Indicators had corrected partially oversold readings before turning back lower, supporting a bearish continuation for the upcoming hours.”
“The daily low stands at 1.5175, so a downward acceleration through the level should signal a run towards the 1.5120/40 area, next intraday support.“
“Above 1.5210, the pair may attempt a recovery up to 1.5250, but it will take some steady advance above this last to trigger a stronger upward corrective movement.”
Key Quotes
“The GBP/USD pair trades below the 1.5200 level for the first time since August 2013, extending its slide on the back of UK Services PMI, down to 55.8 the least grow in almost 2 years.”
“The pair accumulates and over 400 pips’ slide during the last 3 days which leaves intraday technical readings in extreme oversold levels, but there’s nothing suggesting the pair may change course.”
“The 4 hours chart shows that the latest candle opened below the long term ascendant trend line coming from 1.3501, and while is a bit too early to confirm the break, the downward risk has increased sharply. Indicators had corrected partially oversold readings before turning back lower, supporting a bearish continuation for the upcoming hours.”
“The daily low stands at 1.5175, so a downward acceleration through the level should signal a run towards the 1.5120/40 area, next intraday support.“
“Above 1.5210, the pair may attempt a recovery up to 1.5250, but it will take some steady advance above this last to trigger a stronger upward corrective movement.”