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5 Mar 2014
Flash: GBP/USD capped below 1.6690 - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that the pound has shown little progress again this Wednesday, still range bound and directionless according to technical readings.
Key Quotes
“In the fundamental front UK data continues to be encouraging, with services PMI ticking up, but nothing seems to be enough today to move majors. Maybe upcoming US ADP report can trigger some intraday moves by giving a tip on whether US employment stands, but market trusts less by the day on this private survey.”
“Technically, the 4 hours chart shows a mild bearish tone amid 20 SMA converging with the 23.6% retracement of the latest daily rally around 1.6690, offering intraday resistance while indicators remain below their midlines with momentum heading south yet still close to neutral territory.”
“The bigger picture shows price has been finding buyers around 1.6600, the 38.2% retracement of the same rally, and sellers in the strong static resistance area around 1.6745, do unless a clear break of any of such extremes, there will be not much of a trend in the pair.”
“Playing the range will stand for today, and even for Thursday if the BOE stands on hold, while a break seems more likely for Friday with US employment report.”
Key Quotes
“In the fundamental front UK data continues to be encouraging, with services PMI ticking up, but nothing seems to be enough today to move majors. Maybe upcoming US ADP report can trigger some intraday moves by giving a tip on whether US employment stands, but market trusts less by the day on this private survey.”
“Technically, the 4 hours chart shows a mild bearish tone amid 20 SMA converging with the 23.6% retracement of the latest daily rally around 1.6690, offering intraday resistance while indicators remain below their midlines with momentum heading south yet still close to neutral territory.”
“The bigger picture shows price has been finding buyers around 1.6600, the 38.2% retracement of the same rally, and sellers in the strong static resistance area around 1.6745, do unless a clear break of any of such extremes, there will be not much of a trend in the pair.”
“Playing the range will stand for today, and even for Thursday if the BOE stands on hold, while a break seems more likely for Friday with US employment report.”