GBP/USD: 1.4330 is Key Support - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the GBP/USD
pair fell to its lowest in three weeks last Friday, bottoming at 1.4339
before posting a modest bounce that anyway was not enough to push price
back above 1.1470, the 61.8% retracement of the latest daily bullish
run.
Key Quotes:
"On Thursday, the Bank of England maintained its economic policy on hold
as the Brexit referendum looms, resulting in high levels of
uncertainty over the economic future of the UK. Despite polls suggest
the "remain" side will win, speculative interest will likely remain away
from the Pound until the end of June.
From a technical point of view, and according to the daily chart, the
bearish potential is big given that the technical indicators head lower
within negative territory and with sharp bearish slopes, whist the
latest downward acceleration in price has sent it well below a now flat
20 SMA.
In the 4 hours chart, the 20 SMA gains bearish tone above the current
level, whilst the Momentum indicator keeps heading south below its
mid-line, and the RSI hovers around 39, all of which supporting a
continued decline, particularly on a break below 1.4330, the immediate
support."
