Forex: GBP/USD recovers the mark of 1.5940 ahead of BoE
Forex pairs in this Article »
GBP/USD
FXstreet.com (Barcelona) - Earlier today during European the GBPUSD suffered from a sudden dip of nearly 50 pips to a session low of 1.5929. Since then however, the pair has rebounded slightly in recent minutes, regaining the mark of 1.5940/44 Thursday ahead of some key announcements in the United Kingdom.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., "The negative near-term sentiment has driven the GBPUSD lower, with initial support at 1.5950 being cracked. Yesterday's bull rally through 1.6000 and quick subsequent reversal to the initial levels, confirmed a temporary near-term bullish stance. However there is now an overall negative tone in the near-term studies, keeping the downside under pressure, with descending 20-day EMA limiting the upside at 1.6000 for now."
Technically speaking, the pair has netted a decline of -0.26% below its opening today. A clear break below 1.5950 to focus towards the 1.5900 base and range floor initially is likely, with bearish continuation seen towards 200-day MA at 1.5847. Conversely, a bounce through the 1.6000 handle would ease immediate bear-pressure, however only a lift above the 1.6040 level would prevent fresh weakness in favor of stronger recovery, writes Drvenica.
Still ahead today are some key announcements out of the United Kingdom. Beginning at 12:00 GMT, the BoE will announce its Interest Rate Decision (consensus 0.5%), followed by the BoE Asset Purchase Facility.
According to Slobodan Drvenica, an analyst at Windsor Brokers Ltd., "The negative near-term sentiment has driven the GBPUSD lower, with initial support at 1.5950 being cracked. Yesterday's bull rally through 1.6000 and quick subsequent reversal to the initial levels, confirmed a temporary near-term bullish stance. However there is now an overall negative tone in the near-term studies, keeping the downside under pressure, with descending 20-day EMA limiting the upside at 1.6000 for now."
Technically speaking, the pair has netted a decline of -0.26% below its opening today. A clear break below 1.5950 to focus towards the 1.5900 base and range floor initially is likely, with bearish continuation seen towards 200-day MA at 1.5847. Conversely, a bounce through the 1.6000 handle would ease immediate bear-pressure, however only a lift above the 1.6040 level would prevent fresh weakness in favor of stronger recovery, writes Drvenica.
Still ahead today are some key announcements out of the United Kingdom. Beginning at 12:00 GMT, the BoE will announce its Interest Rate Decision (consensus 0.5%), followed by the BoE Asset Purchase Facility.
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