Friday’s NFP numbers exceeded the expectation, showing strong labour market boost and providing initial impulse for GBP bears. With the start of the new week Sterling continues falling, weakened by discouraging UK Services PMI figures.
GBP/USD is down with 0.74% for the day with current market price 1.4017.
Technically speaking the short term outlook for the pair remains bearish. On
the four hour time frame the price the 20-day SMA has turned from flat to
bearish, while the 100-day and 200-day SMAs still maintain bullish slopes.
During the last 4 hours the priced dropped with around 100 pips but found
support at 1.4017 (the current level) provided by the 100-day SMA.
RSI and stochastic are located within extreme negative areas and both are
showing bearish momentum.
According to above the GBP/USD is now poised to extend its decline and first support comes at the key level 1.4000 and in case of breaching it, doors will be opened for testing 1.3979 (last week’s low).
According to above the GBP/USD is now poised to extend its decline and first support comes at the key level 1.4000 and in case of breaching it, doors will be opened for testing 1.3979 (last week’s low).
The critical event for the Sterling this week is the "Super
Thursday" with BoE’s release on
its latest monetary policy and Quarterly Inflation Report (QIR), which will bring huge volatility and will set more clear
direction for the GBP/USD.
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