Tuesday, 7 August 2018

GBP/USD Undermined by Brexit-related concerns


The GBP/USD pair entered into consolidation mode below 1.1300 handle following Monday’s range because of the the absence of UK data and no-deal Brexit keeps weighing on the Pound. Additionally the BOE's policymaker McCafferty reaffirms Carney's rule of thumb of small rate hikes for the next couple of years.
Technically speaking the short-term outlook remains bearish. On the four hour time frame the price is developing well below its moving averages. RSI has slowed down around its 30 level and has lost directional strength. Stochastic is showing strong bearish momentum and is nearing the extreme oversold territory. 
Strong support is lying at 1.2920 (the weekly low), which if broken to below increases the risk for downward slump and marking fresh yearly lows.




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