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22 May 2014
GBP/USD treads water at daily lows
FXStreet (Buenos Aires) - GBP/USD treads water quoting around yesterday’s low of 1.6856, having faltered earlier today around 1.6920, also yesterday’s high. Weaker than expected UK public finance data earlier today harm the currency, unable since then to recover the lost ground. US data just out on the other hand, shows a modest improvement in existing home sales, while Flash Manufacturing PMI exceeded expectations surging to 56.2.
Technically and according to Valeria Bednarik, FXstreet chief analyst, the pair is close to a strong intraday support as she states “in the 4 hours chart indicators lose upward potential but hold in positive territory, while 20 SMA heads higher and offers short term support in the 1.6850 price zone. A break below it is what it takes to confirm a downward extension with 1.6820 as immediate short term support.” She adds that only above 1.6920 mentioned highs, the pair can gain enough upward momentum to extend gains up to 1.6960 next resistance zone.
Technically and according to Valeria Bednarik, FXstreet chief analyst, the pair is close to a strong intraday support as she states “in the 4 hours chart indicators lose upward potential but hold in positive territory, while 20 SMA heads higher and offers short term support in the 1.6850 price zone. A break below it is what it takes to confirm a downward extension with 1.6820 as immediate short term support.” She adds that only above 1.6920 mentioned highs, the pair can gain enough upward momentum to extend gains up to 1.6960 next resistance zone.