Sunday, 24 June 2018

GBP/USD Bearish pressure below post-BoE's level


During the last week the GBP/USD pair marked highest level 1.3314 but closed almost unchanged at 1.3265. BoE surprised markets with its hawkish stance along with the change in the MPC vote, having 3 of 9 votes for rate hikes. Meanwhile the latest release of Brexit drama will probably weigh on the Sterling at tomorrow’s opening.
Technically speaking the short-term outlook for the pair remains neutral to bearish. On the four hour time frame the price is developing between its moving averages with current price in line with the 50-day SMA. The latest recovery was stalled by the 100-day SMA, which shows its corrective attitude. RSI has lost directional strength around its’s mid-line. Stochastic is showing strong bearish momentum and is nearing oversold territory.  
The last week’s low on post-BoE's decision is providing first support at 1.3240 with is broken to below will increase the bearish pressure and will lead the pair towards  1.3205 – 1.3170.



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