GBP/USD warming up for 1.7000?

By FXstreet.com | July 25, 2014 AAA

FXStreet (Edinburgh) - The GBP’s decline seems to have found decent support in the area of 1.6960 on Friday, with the GBP/USD now heading towards 1.6990.



GBP/USD weaker post-GDP



The pair is suffering a disappointing UK docket this week, retreating for the third consecutive week after posting multi-year tops just below 1.7200 the figure. A neutral-to-dovish perception from the BoE minutes plus a softer report from retail sales and an ‘in-line’ GDP figures for the second quarter has combined to drag spot lower. Camilla Sutton, Chief FX Strategist at Scotiabank, noted the short term technical studies are bearish, adding, “Accordingly, the MACD is well into sell territory; the 9-day MA has crossed below the 21-day and the general chart pattern warns of building downside risk”.



GBP/USD levels to consider



The pair is now losing 0.03% at 1.6981 with the next support at 1.6967 (low Jul.24) followed by 1.6952 (low Jun.25) and finally 1.6920 (low Jun.18). On the flip side, a breakout of 1.7054 (high Jul.24) would aim for 1.7078 (76.4% of 1.7095-1.7023) and then 1.7095 (high Jul.23).



comments powered by Disqus
Related Forex Analysis
  1. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center