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3 Apr 2014
GBP/USD weakness compounded by Draghi
FXStreet (Barcelona) - GBP/USD has continued its daily slide, down -0.26% on the day at 1.6583, having previously posted a daily high at 1.6663 and a low at 1.6570, following soft UK data and Draghi’s speech.
Cable carted by double hit
GBP was already soft this morning following soft Services PMI numbers and UK Chancellor Osborne’s testimony to the Treasury Select Committee. On the 1 hour and 4 hour charts, a flag formation, dating back to the March lows around 1.6466, could have been considered to have been in place, with today’s move lower considered a break-out lower, with price approaching the final ¼ . With pound already soft, and strong correlations with EUR in place, ECB President Draghi’s commenting that if inflation does not bounce back after Easter, the ECB will cut and consider QE, held cable to break below 1.6600 where it had momentarily find support.
GBP/USD Technicals
GBP/USD spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish. Hourly RSI sits at 29.08 in neutral territory, up from the previous close at 28.42, while ADX is at 24.15 and ranging, down from the previous close at 26.49. Daily RSI sits at 53.09, in neutral territory.
A climbing 200 SMA on the hourly GBP/USD chart is currently at 1.6632, up from 1.6593 at the previous close. On average, the exponential closing price for the past 20 days is 1.6605, with the trend indicating a continuation higher ahead. 2-Standard Deviation Volatility Bandwidth is presently at 81 pips and expanding on the hourly GBP/USD chart, while the ATR (14) is currently at
9 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 265 pips and shrinking.
GBP/USD Levels
Current price is 1.6582, with resistance ahead at 1.6585 (Weekly Classic PP), 1.6592 (Daily Classic S2), 1.6593 (Hourly 200 SMA), 1.6605 (Daily 20 SMA) and 1.6609 (Daily Classic S1). Support below can be found at 1.6570 (Daily Low), 1.6564 (Daily Classic S3), 1.6518 (Weekly Classic S1), 1.6489 (Monthly Low) and 1.6471 (Daily 100 SMA).
Cable carted by double hit
GBP was already soft this morning following soft Services PMI numbers and UK Chancellor Osborne’s testimony to the Treasury Select Committee. On the 1 hour and 4 hour charts, a flag formation, dating back to the March lows around 1.6466, could have been considered to have been in place, with today’s move lower considered a break-out lower, with price approaching the final ¼ . With pound already soft, and strong correlations with EUR in place, ECB President Draghi’s commenting that if inflation does not bounce back after Easter, the ECB will cut and consider QE, held cable to break below 1.6600 where it had momentarily find support.
GBP/USD Technicals
GBP/USD spot is in oversold territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish. Hourly RSI sits at 29.08 in neutral territory, up from the previous close at 28.42, while ADX is at 24.15 and ranging, down from the previous close at 26.49. Daily RSI sits at 53.09, in neutral territory.
A climbing 200 SMA on the hourly GBP/USD chart is currently at 1.6632, up from 1.6593 at the previous close. On average, the exponential closing price for the past 20 days is 1.6605, with the trend indicating a continuation higher ahead. 2-Standard Deviation Volatility Bandwidth is presently at 81 pips and expanding on the hourly GBP/USD chart, while the ATR (14) is currently at
9 pips. Daily 2-Standard Deviation Volatility Bandwidth is at 265 pips and shrinking.
GBP/USD Levels
Current price is 1.6582, with resistance ahead at 1.6585 (Weekly Classic PP), 1.6592 (Daily Classic S2), 1.6593 (Hourly 200 SMA), 1.6605 (Daily 20 SMA) and 1.6609 (Daily Classic S1). Support below can be found at 1.6570 (Daily Low), 1.6564 (Daily Classic S3), 1.6518 (Weekly Classic S1), 1.6489 (Monthly Low) and 1.6471 (Daily 100 SMA).