GBP/USD holds above 1.0720, attempts to recover

By FXstreet.com | July 23, 2014 AAA

FXStreet (Córdoba) - The GBP/USD lost ground on Wednesday for the sixth trading day in a row but continues to hold above 1.7000. During the European session the decline from levels near 1.7100 found support above 1.7020 and currently is recovering ground as it trades above 1.7040.

The Pound was among the worst performers across the board weakened by the minutes of the Bank of England. “The minutes hint that wage inflation trends are, in relative terms, becoming a more important focus than uncertain estimates of the amount of slack, which in our view gives the July Minutes a slightly dovish lilt”, said the RBS FX Strategists Team.

GBP/USD technical outlook

Despite falling on Wednesday the pair was unable to break below 1.7030 static support, notes Valeria Bednarik, Chief Analyst at FXStreet. According to her the GBP/USD maintains an overall short term tone. “The hourly chart shows 20 SMA gaining bearish momentum above current price while indicators support a break lower”:

In the 4-hours chart Bednarik points out that the price stands a few pips below its 200 EMA and that a price acceleration below 1.0720 “should support a downward extension towards 1.6950”.

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