Tuesday 20 June 2017

Cable slumped due to political turmoils

Cable is trading today at lowest levels, even lower since the snap election notice from 18th if April. Ahead of Wall Street opening the GBP/USD recovered some of the losses and is currently trading at 1.2621. 
BOE's Governor Mark Carney speech set under huge selling pressure the Pound, keeping dovish mood on interest rate amid the Brexit drama. 
Meanwhile the negotiations between the Northern Irish DUP  and Prime Minister May's Conservatives are not developing in an the expected way.  
On the other hand, the US dollar is seen stronger having DXY up 0.29% today, which additionally makes the Pound suffer.
Technically speaking, the four-four time frame is showing strong bearish signs. The price has crossed to below the 20-day SMA, which has turned to bearish side. RSI has retreated from its mid-line and has declined to negative territory. Stochastic is located within extreme oversold area and is displaying lack of momentum. 
It seems that the Cable is gathering bearish momentum before starting correction.


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