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6 May 2016
GBP/USD: underperforming, but nt vs the euro
GBP/USD is currently trading at 1.4483 with a high of 1.4530 and a low of 1.4442.
GBP/USD closed the U.S. session making yet further lows as Brexit fears have started to weigh on the U.K. economy for Q2 shown in UK Markit/CIPS services and composite PMI data that came in below expectations for April at 52.3 (versus a market consensus of 53.5) and 51.9 (53.2) respectively. However, sterling is performing well vs the euro in the otherwise bullish trend in EUR/GBP.
GBP/USD levels
Analysts at Scotiabank noted that GBP/USD has eased below Wednesday's low this morning, in similar fashion to EUR/USD, and lost some short-term technical momentum as a result. "Daily reversal signals from earlier this week (bearish key reversal day Tuesday) suggests risks are shifting towards a drop to 1.43."
Valeria Bednarik, chief analyst at FXStreet explained, " in the 4 hours chart, the 20 SMA extended its decline above the current level, and stands now around 1.4560, while the RSI indicator has turned south around 39, and the Momentum indicator turned slightly higher near oversold levels, all of which maintains the risk towards the downside. The next bearish target on a break below the mentioned daily low is the 1.4370 region and the 61.8% retracement of the mentioned rally. "
GBP/USD closed the U.S. session making yet further lows as Brexit fears have started to weigh on the U.K. economy for Q2 shown in UK Markit/CIPS services and composite PMI data that came in below expectations for April at 52.3 (versus a market consensus of 53.5) and 51.9 (53.2) respectively. However, sterling is performing well vs the euro in the otherwise bullish trend in EUR/GBP.
GBP/USD levels
Analysts at Scotiabank noted that GBP/USD has eased below Wednesday's low this morning, in similar fashion to EUR/USD, and lost some short-term technical momentum as a result. "Daily reversal signals from earlier this week (bearish key reversal day Tuesday) suggests risks are shifting towards a drop to 1.43."
Valeria Bednarik, chief analyst at FXStreet explained, " in the 4 hours chart, the 20 SMA extended its decline above the current level, and stands now around 1.4560, while the RSI indicator has turned south around 39, and the Momentum indicator turned slightly higher near oversold levels, all of which maintains the risk towards the downside. The next bearish target on a break below the mentioned daily low is the 1.4370 region and the 61.8% retracement of the mentioned rally. "