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20 May 2015
GBP/USD downside bias remains
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5532 with a high of 1.5589 and a low of 1.5471.
GBP/USD is moving over to Asia with a close above the 1.5520 supporting level as the greenback was set back a little on the build up to the FOMC minutes in the US. The minutes confirmed that it is very unlikely that a rate hike would come as soon as June with most members voting against a move while an optimistic growth outlook remains for the rest of the year.
There remains a negative tone surrounding the pound now that the elections have passed coupled with a bearish outlook due to austerity forecasted for coming years in the UK and with a referendum on EU membership, investors are nervous to be "too" long of the UK.
Technically, a close below 1.5450 could be bearish and counter the recent upside and minor recovery exposing the cloud support at 1.5059. Karen Jones, chief analyst at Commerzbank explained that intraday rallies are indicated top terminate circa 1.5625 for further losses. "Above 1.5625 lies the 1.5813 recent high. Key resistance remains 1.5880 (Fibonacci resistance)."
GBP/USD is moving over to Asia with a close above the 1.5520 supporting level as the greenback was set back a little on the build up to the FOMC minutes in the US. The minutes confirmed that it is very unlikely that a rate hike would come as soon as June with most members voting against a move while an optimistic growth outlook remains for the rest of the year.
There remains a negative tone surrounding the pound now that the elections have passed coupled with a bearish outlook due to austerity forecasted for coming years in the UK and with a referendum on EU membership, investors are nervous to be "too" long of the UK.
Technically, a close below 1.5450 could be bearish and counter the recent upside and minor recovery exposing the cloud support at 1.5059. Karen Jones, chief analyst at Commerzbank explained that intraday rallies are indicated top terminate circa 1.5625 for further losses. "Above 1.5625 lies the 1.5813 recent high. Key resistance remains 1.5880 (Fibonacci resistance)."