Tuesday, 8 May 2018

GBP/USD Consolidating ahead of BoE’s decision


The GBP/USD pair bounced modestly from the multi-month lows at 1.3480 but yet bulls are not strong enough to reverse the trend despite the US dollar lost ground after Trump's decision to withdraw from the Iranian nuclear deal. Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price is developing below its 100-day and 200-day SMAs, although is trying to break above the 20-day SMA, which is also bearish. RSI escaped from the oversold area but yet remains below its mid-line. Stochastic is giving initial sighs for U-turn and currently is located at 40. The limited upward potential can not offer much, so the GBP/USD pair is more likely to remain in consolidation phase within tight range between 1.3480 and 1.3600 until BOE's decision on Thursday. 



No comments:

Post a Comment