GBP/USD: Rallies on USD Weakness - FXStreet

GBP/USD: Rallies on USD Weakness - FXStreet

2 May 2016, 21:18
Roberto Jacobs
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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."


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