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11 Mar 2014
Flash: GBP/USD bearish breakout around the corner - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst notes that the GBP/USD shows little reaction this Tuesday following mixed UK data.
Key Quotes
“It showed industrial production expanded less than expected and manufacturing one raised above forecasted. BOE’s Carney is on the wires too, but adding nothing new to the stage, reaffirming QE is here to stay and rate hikes are not a done deal yet.”
“But yesterdays’ break lower has left the pair vulnerable to more downward movements as the 4 hours chart shows indicators still heading south in negative territory, and 20 SMA gaining bearish slope above current price. In the meantime, price remains unable to regain 1.6650 immediate resistance, and continues heading lower, approaching 1.6600 Fibonacci support: a price acceleration through it should lead to a bearish extension down to 1.6540/50 area, next static support.”
“A recovery above 1.6650 may see the pair extending up to 1.6690, but it will be only above this last that the pair will shrug off the bearish potential and recover towards 1.6730 area, quite unlikely at the time being yet not impossible.”
Key Quotes
“It showed industrial production expanded less than expected and manufacturing one raised above forecasted. BOE’s Carney is on the wires too, but adding nothing new to the stage, reaffirming QE is here to stay and rate hikes are not a done deal yet.”
“But yesterdays’ break lower has left the pair vulnerable to more downward movements as the 4 hours chart shows indicators still heading south in negative territory, and 20 SMA gaining bearish slope above current price. In the meantime, price remains unable to regain 1.6650 immediate resistance, and continues heading lower, approaching 1.6600 Fibonacci support: a price acceleration through it should lead to a bearish extension down to 1.6540/50 area, next static support.”
“A recovery above 1.6650 may see the pair extending up to 1.6690, but it will be only above this last that the pair will shrug off the bearish potential and recover towards 1.6730 area, quite unlikely at the time being yet not impossible.”