BoE minutes not hawkish enough to revert GBP/USD bearish trend - FXStreet

By FXstreet.com | Updated August 20, 2014 AAA

FXStreet (Barcelona) - FXStreet Chief Analyst Valeria Bednarik comments on the GBP/USD price action following the release of BoE minutes today, revealing that two MPC members voted in favor of a rate hike.

Key quotes



"The 4 hours chart shows price stalled at 1.6678, right below its 20 SMA in the mentioned time frame that maintains a clear bearish slope."



"Momentum maintains its bearish slope and stands near oversold levels, while RSI barely corrects higher, both well into negative territory."



"Furthermore, price retraced back to 1.6650 price zone, 200 DMA suggesting data is not enough to revert current bearish trend."



"Some consolidation should be expected now, yet as long as the high holds, the upside will remain limited, with a break below 1.6600 putting the pair back in the bearish track towards 1.6540/60 price zone."



"A steady advance beyond 1.6680 on the other hand, may see price attempting a recovery towards 1.6730, where a daily descendant trend line coming from this year high should halt further advances."



Related Forex Analysis
  1. Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions
    Forex News

    Weekly Forecast: FX Volatility to Persist on Key Data, Rate Decisions

  2. British Pound Holds on by a Thread - What to Watch in Week Ahead
    Forex News

    British Pound Holds on by a Thread - What to Watch in Week Ahead

  3. GBP/USD bounces at 1.5940 and returns to 1.5990
    Forex News

    GBP/USD bounces at 1.5940 and returns to 1.5990

  4. GBP/USD slumps to 1.5950
    Forex News

    GBP/USD slumps to 1.5950

  5. GBP/USD retreats from above 1.6000
    Forex News

    GBP/USD retreats from above 1.6000

Trading Center