GBP/USD: 1.4330 is Key Support - FXStreet

GBP/USD: 1.4330 is Key Support - FXStreet

16 May 2016, 04:03
Roberto Jacobs
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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."


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