GBP/USD: Further Declines on the Cards? - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained the GBP/USD pair extended its weekly rally up to 1.4739, but turned lower after the release of some soft UK data.
Key Quotes:
"The second estimate of the Q1 GDP came in at 0.4%, as previously estimated, although the year-on-year comparison fell to 2.0% from 2.1%. BBA mortgage approvals fell to 40.1K in April, down from 45.1K in March and below the median forecast for a more modest decline to 44.7k, the lowest reading since March 2015."
"The Pound eased further in the US afternoon, and trades near its daily low set at 1.4639, with the intraday technical picture suggesting that the downward corrective move can continue, as in the 4 hours chart, the technical indicators have retreated sharply from over near overbought levels and maintain their bearish slopes as they approach to their mid-lines. In the same chart, the 20 SMA heads sharply higher, now around 1.4610, while the 61.8% retracement of the latest bearish run stands around 1.4600, making of the region a strong support in the case of further declines."
