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27 Feb 2014
Flash: GBP/USD gathering bearish momentum - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that the dollar gathers momentum as tension in Russia and Ukraine escalates, with the DAX down almost 1.5% in this European morning despite positive German employment readings.
Key Quotes
“Local share markets are all on the slide, and are the main market driver today due to run to safety, but be aware the calendar includes some interesting data for later in the US: Durable Goods Order and some Yellen speech.”
“Nevertheless, the GBP/USD presents an increasing bearish tone, with price developing below its 20 SMA and indicators heading lower around their midlines, still showing not much strength.”
“The pair trades near key 1.6600 level, 38.2% retracement of its latest bullish rally, albeit the weekly low stands at 1.6582 and that’s the level to break to trigger stops and confirm a new leg lower, towards 1.6550 in the short term. If this last gives up, 1.6500/20 area is next.”
“On the other hand, the upside seems pretty well limited by 1.6660/90 area, with sellers likely surging on approaches to the level. Only a breach of the 1.6700 figure should deny the possibility of more falls and favor and advance up to 1.6745 for today.”
Key Quotes
“Local share markets are all on the slide, and are the main market driver today due to run to safety, but be aware the calendar includes some interesting data for later in the US: Durable Goods Order and some Yellen speech.”
“Nevertheless, the GBP/USD presents an increasing bearish tone, with price developing below its 20 SMA and indicators heading lower around their midlines, still showing not much strength.”
“The pair trades near key 1.6600 level, 38.2% retracement of its latest bullish rally, albeit the weekly low stands at 1.6582 and that’s the level to break to trigger stops and confirm a new leg lower, towards 1.6550 in the short term. If this last gives up, 1.6500/20 area is next.”
“On the other hand, the upside seems pretty well limited by 1.6660/90 area, with sellers likely surging on approaches to the level. Only a breach of the 1.6700 figure should deny the possibility of more falls and favor and advance up to 1.6745 for today.”