GBP/USD closes at lowest in 4-months

By FXstreet.com | Updated August 13, 2014 AAA

FXStreet (Córdoba) - The GBP/USD dropped more than 100 pips and had the worst day in months. Price bottomed at 1.6683 during the American session and finished trading slightly above the lows, around 1.6688, posting the lowest daily close since April.



Economic data from the UK and a dovish message from the Bank of England pushed the Pound toward the downside across the board on Wednesday. During the European session the GBP/USD reached 1.6840 but then reversed, falling almost 160 pips from the highs.



GBP/USD technical perspective

“The hourly chart shows indicators still heading lower despite in extreme oversold levels, while 20 SMA turned strongly south, offering now dynamic resistance in the 1.6760 price zone”, says Valeria Bednarik, Chief Analyst at FXStreet.



The 4-hour chart is also strongly bearish notes Bednarik, “supporting fresh lows ahead as long as mentioned resistance holds”.



Related Forex Analysis
  1. Forex News

    GBP/USD Awaiting Clearer Guidance Near Range-Top

  2. Forex News

    GBP/USD correction should struggle at the 1.5886 4 month downtrend – Commerzbank

  3. Forex News

    GBP strength towards 1.5820/25 likely - UOB Group

  4. Forex News

    Strategy Video: When to Go for the Short-Term or Long-Term Trade

  5. Forex News

    GBP/USD bulls stalled at 1.58 so far - FXStreet

Trading Center