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18 Mar 2014
Flash: GBP/USD Forecast: large selling orders pressuring Pound - FXStreet
FXStreet (Córdoba) - Valeria Bednarik, chief analyst at FXStreet commented the GBP/USD holds a slight bearish tone but it may continue range trading, ahead of tomorrow's FED meeting.
Key Quotes
"Pound trades at the base of its latest range, pressuring the 1.6600 level against the greenback, as large selling orders coming from a custody bank had been run with European opening while market does not feel so confident today: stocks trade lower across the world, favoring yen overall".
"With no UK data released and some minor US numbers schedule for later, the pair may continue range trading, ahead of tomorrow's FED meeting. Technically bearish according to the 4 hours chart, price is unable to clearly break below the key 1.6600 support, where a Fibonacci level converges with the 200 EMA. Some intraday lows stand at 1.6685 while past week one is 1.6567, meaning a break below 1.6690 may see a test of this last, albeit only a price acceleration below this last will confirm the bearish continuation".
"On the hand and as usual these days, 1.6650 continues to cap the upside, with a short lived failure spike above it seen yesterday. Either a price acceleration or a 4 hours candle opening above it is required to confirm an advance towards 1.6690/1.6710 price zone".
Key Quotes
"Pound trades at the base of its latest range, pressuring the 1.6600 level against the greenback, as large selling orders coming from a custody bank had been run with European opening while market does not feel so confident today: stocks trade lower across the world, favoring yen overall".
"With no UK data released and some minor US numbers schedule for later, the pair may continue range trading, ahead of tomorrow's FED meeting. Technically bearish according to the 4 hours chart, price is unable to clearly break below the key 1.6600 support, where a Fibonacci level converges with the 200 EMA. Some intraday lows stand at 1.6685 while past week one is 1.6567, meaning a break below 1.6690 may see a test of this last, albeit only a price acceleration below this last will confirm the bearish continuation".
"On the hand and as usual these days, 1.6650 continues to cap the upside, with a short lived failure spike above it seen yesterday. Either a price acceleration or a 4 hours candle opening above it is required to confirm an advance towards 1.6690/1.6710 price zone".