GBP/USD trims intraday losses

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The GBP/USD managed to bounce and trimmed intraday losses after hitting a 3-week low at the beginning of the New York session.

The GBP/USD came under renewed pressure following the release of BoE latest meeting minutes and touched a low of 1.7022, last seen June 30. However, the Cable found buyers and bounced from lows to currently trade at the 1.7050 zone, still down 0.07% on the day.

The GBP/USD is falling for a sixth trading day in a row, after reaching a 6-year high of 1.7190 on July 15, now eyeing immediate support at 1.7000 (psychological level/38.2% Fibo of 1.6692-1.7190).

GBP/USD technical perspective

“The pair quickly approaches critical 1.7000 figure, with the hourly chart showing a strong bearish potential, as per price extending below its 20 SMA and indicators heading lower below their midlines”, said Valeria bednarik, chief analyst at FXStreet. “In the 4 hours chart technical indicators also head south in negative territory, while current candle opened below 200 EMA, first time since mid June, adding to the bearish case”.

Bednarik locates immediate support levels at 1.7020, 1.6985 and 1.6950, while she places resistances at 1.7050, 1.7095 and 1.7120.

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