The
GBP/USD pair entered into consolidation mode below 1.1300 handle following
Monday’s range because of the the absence of UK
data and no-deal Brexit keeps
weighing on the Pound. Additionally the BOE's policymaker McCafferty reaffirms Carney's
rule of thumb of small rate hikes for the next couple of years.
Technically speaking the short-term outlook remains bearish. On the four hour
time frame the price is developing well below its moving averages. RSI has
slowed down around its 30 level and has lost directional strength. Stochastic
is showing strong bearish momentum and is nearing the extreme oversold
territory.
Strong support is lying at 1.2920 (the weekly low), which if broken to below
increases the risk for downward slump and marking fresh yearly lows.
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