GBP/USD: 1.7060 key level to watch - FXStreet

By FXstreet.com | July 07, 2014 AAA

FXStreet (Bali) - Valeria Bednarik, Chief Analyst at FXStreet, shares her technical take on GBP/USD, noting that the movement still seem just corrective in nature.



Key Quotes



"The GBP/USD retraced further from its year high, down to 1.7107 on the day, but maintaining the short term negative tone according to the hourly chart: 20 SMA presents a clear bearish slope and acts as dynamic resistance, capping the upside now around 1.7130, while indicators turn lower below their midlines."



"In the 4 hours chart the technical picture is quite alike with 20 SMA losing its upward slope, now flat above current price, and indicators entering negative territory."



"The movement seems just corrective, with 1.7060 as key level to watch during the upcoming hours, as per being the 23.6% retracement of the latest bullish run: a break below should signal a downward continuation in the pair while further upward momentum will surge only on a break above 1.7180 year high."



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