Pound extended its decline early Europe after the hurdle of negative data released Wednesday, with the GBP/USD establishing so far a daily low of 1.6657. Bouncing some for the low, the pair remains below 1.6700 immediate resistance, with the 4 hours chart showing indicators exhausted in extreme oversold levels yet far from confirming an upward correction. In the same time frame, 20 SMA maintains a strong bearish slope, offering next resistance in the 1.6760 area, probably top for the day in case of continued advances.
Nevertheless, the downside is favored now that the market has acknowledge rates won’t be raise that soon after all in the UK: below 1.6650 immediate short term support, next bearish target comes at the 1.6600/20 area while a break below this last figure will open doors for a test of 1.6450 area over the upcoming sessions.
View Live Chart for GBP/USD
Nevertheless, the downside is favored now that the market has acknowledge rates won’t be raise that soon after all in the UK: below 1.6650 immediate short term support, next bearish target comes at the 1.6600/20 area while a break below this last figure will open doors for a test of 1.6450 area over the upcoming sessions.
View Live Chart for GBP/USD
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