GBP/USD unable to gather momentum

By FXstreet.com | Updated August 26, 2014 AAA

FXStreet (Córdoba) - The GBP/USD remains in consolidation mode Tuesday, unable to set a short-term direction and hovering just below 1.6600.

In the absence of first-tier economic data and despite UK traders rejoining the market after a national holiday, the Cable has failed to gather pace and continues to mark time near a 5-month low of 1.6535 scored at the weekly opening. At time of writing, the GBP/USD is trading at 1.6577, unchanged on the day.

During the New York session, the US will release durable goods orders and consumer confidence data which may wake up the dollar, which is taking a breather following sharp gains across the board.

GBP/USD technical outlook

"Considering the pair is trading at a 5-month low, after a steady 7 weeks slide, some may consider an interim bottom is under way", said Valeria Bednarik, chief analyst at FXStreet. "But the fact is that is too early to think about it, more with price unable to pick up: the dominant trend is still bearish, and current consolidative stage is more a pause, looking for a trigger, than a sign of clear exhaustion".

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