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GBPUSD is still struggling to find a room to fix its oversold stance

Discussion in 'Current Market Sentiments' started by fx-recommends, Jan 20, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    GBPUSD Daily 20-01-2016 05-25-28 ص.jpg
    The British pound is still suffering from the first appearance of BOE's chief Mark Carney who lowered the expectations of watching BOE tracking the Fed by raising the interest rate by saying phrases like " The journey to monetary-policy normalization is still young" and like "Now is not yet the time to raise interest rates" or even like " U.S. has stronger cost pressures, while Britain faces a greater drag from fiscal policy and weak global inflation"

    Carney did not highlighted the oil slide influences on the inflation outlook in UK only but he has underscored also the global economic downside risks impacts on UK economic expansion.

    From another side, Dec UK CPI came yesterday as expected to show the highest yearly rising last year by 0.2% only, after barely increasing by 0.1% in November, while BOE's yearly inflation target is 2%.

    The cable shy try to correct from 1.4235 has been limited by reaching 1.4338 which has been followed by retreating extension to 1.4127, before residing for trading near 1.4150 currently having 1.4110 bottom of March 2009 unbroken yet.

    The cable is still maintaining its relatively high falling pace which started following forming a top at 1.5238 on last Dec. 11, after forming a series of lower highs and also lower lows.

    The cable daily RSI is into its oversold area below 30 reading now 15.045 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in relatively deep place into its oversold area below 20 reading only 4.515 and also its signal line which is reading now 5.158 showing stronger need for finding a room to fix this oversold stance.

    The cable daily Parabolic SAR (step 0.02, maximum 0.2) is in its day number 25 of continued being above the trading rate reading today 1.4365.

    Important levels: Daily SMA50 @ 1.4892, Daily SMA100 @ 1.5106 and Daily SMA200 @ 1.5299


    S1: 1.4110
    S2: 1.40
    S3: 1.3844
    R1: 1.4338
    R2: 1.4474
    R3: 1.4643

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

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    prav likes this.

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