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24 Jun 2013
GBP/USD Lower on stronger USD
FXstreet.com (London) - GBP/USD is printing a low of 1.5359 this morning on the European open and has gapped lower on the charts.
GBP/USD has followed suit in a broad based dollar rally, where US yields are looking attractive to investors after last weeks bullish FOMC announcements, indicating a rise in interest rates in the US could come sooner. Today in the afternoon we have some second tier US data in the form of Chicago Fed National Activity Index (May) and Dallas Fed Manufacturing Business Index (June).
GBP/USD bearish tehnicals
Saeed Amen, strategist at Nomura said that the technicals are bearish with a lower Spot, they keep a bearish view. RSI has yet to turn higher, which suggests we haven't yet reached a low. Spot also broke down through 20D SMA, suggesting further downside is likely. He notes that with bandwidth falling, spot is likely to test the lower part of the range. Their target is 1.5450 (below 55D SMA and close to bottom part of the range).
GBP/USD has followed suit in a broad based dollar rally, where US yields are looking attractive to investors after last weeks bullish FOMC announcements, indicating a rise in interest rates in the US could come sooner. Today in the afternoon we have some second tier US data in the form of Chicago Fed National Activity Index (May) and Dallas Fed Manufacturing Business Index (June).
GBP/USD bearish tehnicals
Saeed Amen, strategist at Nomura said that the technicals are bearish with a lower Spot, they keep a bearish view. RSI has yet to turn higher, which suggests we haven't yet reached a low. Spot also broke down through 20D SMA, suggesting further downside is likely. He notes that with bandwidth falling, spot is likely to test the lower part of the range. Their target is 1.5450 (below 55D SMA and close to bottom part of the range).