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    GBP/USD plunges below 100-DMA, fast approaching 1.4300 level Haresh Menghani

    The GBP/USD pair's downward momentum accelerated during early US trading session with the pair plummeting below 100-DMA and May lows support near 1.4350, to its lowest level since April 22.During European trading session the pair remained well offered below 50-day SMA support and every attempt of a tepid recovery beyond 1.4450 were sold into. The bulls finally surrendered and the pair decisively broken below 100-day SMA, confirming a bearish double-top chart pattern formation on daily chart, around 1.4700-20. On the economic data front, US UoM Consumer sentiment dropped to 94.3 in June from a downwardly revised 94.7 May reading. The reading, however, was marginally better-than 94.1 expected. The US Dollar maintained its bid-tone amid global flight to safety as depicted by a sharp decline in sovereign bond yields across the world. Moreover, the GBP/USD pair extended its downfall as investors focus remained centered around the upcoming 'Brexit' referendum on June 23. Technical outlook Valeria Bednarik, Chief Analyst at FXStreet notes, "the 1 hour chart shows that the price is well below a bearish 20 SMA that keeps capping the upside, whilst the RSI indicator holds within oversold territory, and the Momentum indicator heads modestly lower below 100. In the 4 hours chart, the technical indicators head sharply lower near oversold readings, supporting some additional declines towards the 1.4350 level, and beyond, should the dollar pick up pace with the upcoming consumer sentiment index.""Support levels: 1.4350 1.4320 1.4280
    Resistance levels: 1.4460 1.4500 1.4550"

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