Tuesday, 8 August 2017

GBP/USD Facing downside risk on corrective pullbacks


The GBP/USD pair continues to keep its downside pressure, regardless of the greenback’s faintness and the less attractive Pound. The macroeconomic agenda has nothing to offer until Thursday  and the more important event will be next Friday, when the US inflation numbers will be released. So no dramatic movements are expected and the pair will keep its sideways course.
On the four-hour time frame the price continues to develop below its bearish 20-day SMA. RSI and stochastic are located within oversold territory but both had lost directional strength.
The intraday support is located around the level of the 200-day SMA – 1.3000 and in case of breaking it to below, next bears’ target will be 1.2950. Looking to the upside, first resistance is seen at 1.3100 with a advance beyond here additional gains up to 1.1330 – 1.1350 are expected.  
Generally in the short term the cable will keep facing downside risk on corrective pullbacks.







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