FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that the GBP/USD is experiencing temporal relief on Wednesday due to the rising risk appetite and the positive UK PMI Services numbers.
"The pair bounced from a fresh multi-month low of 1.6443 and approached to the 1.6500 level before settling down a few pips below it."
"The technical picture however, is still quite heavy, with price well below a bearish 20 SMA and indicators barely correcting extreme oversold readings."
"Actually, former lows in the 1.6540 area are the immediate resistance to overcome to confirm a steadier recovery towards the 1.6580/1.6600 price zone."
"Further falls below mentioned daily low on the other hand, should see the pair extending down to 1.6400 figure."