Monday, 27 February 2017

GBP/USD Risk remains towards the downside

The GBP/USD started the week weaker and early this morning hit low at 1.2381, as the pair was undermined by the reports that Scotland may call a second independence referendum as early as next month. The pair bounced off the low and currently is trading slightly above 1.2400 handle. 
As seen on the four hours time frame the price has crossed to below the bearish 20-day SMA. RSI is standing at around 38 and has lost directional strength. The stochastic is showing strong oversold conditions and is displaying bearish momentum. Technical readings confirm that the risk remains towards the downside. The macro agenda for today is not offering much from UK side, but on the other shore we have data on Pending Home Sales, Durable Goods Orders and the FOMC member Kaplan speech. So Sterling might be seen stronger only if US data disappoints. 


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