GBP/USD: Rallies on USD Weakness - FXStreet
Valeria Bednarik,
chief analyst at FXStreet explained that the GBP/USD pair advanced up
to 1.4695, its highest in four months, and holds nearby at the end of
the day, with no certain catalyst behind the mode beyond dollar's own
weakness.
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Key Quotes:
"Relief
over the possibility of a Brexit has kept the Pound surging during the
previous weeks, but the rally stalled amid poor UK macroeconomic data,
pointing for a continued slowdown in the local economy."
The
kingdom will release its manufacturing figures this Tuesday, and given
the releases of this Monday, the figure will likely disappoint, weighing
on the GBP."
"From a technical point of view, and despite the
rally extended, the upside is looking slightly exhausted, as in the 4
hours chart, the technical indicators lack clear directional strength,
having turned modestly lower within positive territory. In the mentioned
time frame, however, the 20 SMA keeps heading higher and acting as
dynamic support, now around 1.4605, the level to break to confirm a
downward move for the upcoming sessions."
