GBP/USD looking hopeless; 1.6920 key risk

By FXstreet.com | July 29, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6937, down -0.27% on the day, having posted a daily high at 1.6997 and low at 1.6933.

GBP/USD is lower and looking bearish with a break below the 1.6973 50 DMA. 1.6920 is a levels that if broken could give up the handle to the bears and open up 1.6784 and weekly classic S3. Meanwhile, and apart from the better numbers in consumer confidence form the US today, Eric Theoret, Currency Strategist at Scotiabank noted that the "BoE Dep. Gov. Broadbent has spoken about the UK’s current account deficit, highlighting that its deterioration has been the result of disappointing growth in the euro area and a softening of income from overseas assets. “Broadbent also underscored the IMF’s assessment of the exchange rate as ‘moderately overvalued’. Monday’s IMF Article IV Consultation highlighted the need for the BoE to maintain accommodation as a result of soft inflation while underscoring the risks posed by financial stability”.

GBP/USD Levels

Spot is presently trading at 1.6937, and next resistance can be seen at 1.6963 (Hourly 20 EMA) and 1.6973 (Yesterday's Low). Support below can be found at 1.6933 (Daily Low), 1.6924 (Weekly Classic S1), 1.6872 (Weekly Classic S2), 1.6850 (Daily 100 SMA) and 1.6784 (Weekly Classic S3).

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