FXStreet (Barcelona) - According to FXStreet Chief Analyst Valeria Bednarik, data released today showing a considerable annual increase in UK Industrial Output gave GBP/USD a lift up to 1.6817 daily high.
“However, the pair was unable to hold to its gains and quickly fell back below the 1.6800 mark, posting a lower low for the week at 1.6765.”
“In the 4 hours chart, price accelerates below its 200 EMA and points to close current candle below it, first time in a week and a first sign on increasing bearish pressure. The same chart shows price also below 20 SMA, albeit indicators remain flat in neutral territory not yet reflecting latest slide. ”
“Finding some buyers around critical 1.6770 support, renewed selling pressure below the level should favor a retest of the 1.6700/20 price zone, next bit support. Further falls are not yet seen, yet once below 1.6690, the path is quite clear down to the 1.6650 level.”
“200 EMA at 1.6795 acts as immediate short term resistance, followed by 1.6820 the daily descendant trend line coming from this year high. Gains above this last are required to deny the bearish tone, not seen for today.”