9 Jul 2013
GBP/USD drops to 1.4850 support
FXstreet.com (London) - GBP/USD dropped to 1.4850 support after the NIESR GDP Estimates.
The GDP Estimate released by the National Institute of Economic and Social Research came in line at 0.6% against previous and this was enough to rattle the bears cage. Although the data is not necessarily a reading which the market pays close attention to as only being an estimate, it is none the less reliable and a reading which the BoE would monitor in terms of policy assessments.
GBP/USD technically bearish
Saeed Amen, strategist at Nomura said the technicals bearish for this week and trending. He keeps their bearish view. The RSI continues to fall and at low levels, indicating further downside momentum. Since he commented the Spot has broken the downside Bollinger band. “Also bandwidth has expanded, suggesting it is in a breakout phase and could see more downside”. The trend is to the downside and as far as area of 1.5605 is in tact, the pair is targeting 1.4550. However, as previously encountered, the market has a habit of filling the gaps regardless of the longer term fundamentals and risk to the upside brings in a scenario that might shake out the less committed bears on a stop run sealing the gap first.
The GDP Estimate released by the National Institute of Economic and Social Research came in line at 0.6% against previous and this was enough to rattle the bears cage. Although the data is not necessarily a reading which the market pays close attention to as only being an estimate, it is none the less reliable and a reading which the BoE would monitor in terms of policy assessments.
GBP/USD technically bearish
Saeed Amen, strategist at Nomura said the technicals bearish for this week and trending. He keeps their bearish view. The RSI continues to fall and at low levels, indicating further downside momentum. Since he commented the Spot has broken the downside Bollinger band. “Also bandwidth has expanded, suggesting it is in a breakout phase and could see more downside”. The trend is to the downside and as far as area of 1.5605 is in tact, the pair is targeting 1.4550. However, as previously encountered, the market has a habit of filling the gaps regardless of the longer term fundamentals and risk to the upside brings in a scenario that might shake out the less committed bears on a stop run sealing the gap first.