The GBP/USD trades to the downside this Wednesday, hit by UK strongly disappointing data: House price index fell towards -0.7% while Manufacturing PMI printed 45.4, shrinking at its fastest pace in over 3 years. Early year readings of negative GDP showing the economy is doing worse, are being confirmed with this numbers, and the GBP/USD trades near the daily low set at 1.5618.
The technical picture shows the pair gaining bearish tone in the 4 hours chart, with the upside capped by 20 SMA and indicators heading south below their midlines, despite market mood is in general positive ahead of the FOMC. 1.5610/20 area offers strong support for the upcoming hours, as per yesterdays’ low at 1.5624, and 200 EMA in the 4 hours chart around 1.5610: a break below this last should point for a bearish acceleration towards the 1.5550 level if dollar is able to gain track over after the FED. To the upside, 1.5660 comes as immediate resistance, followed by 1.5700 price zone, which will probably attract sellers if reached. Steady gains above 1.5710 are required to deny the bearish tone, with a break above 1.5730 pointing for a retest of 1.5770 price zone.
View Live Chart for GBP/USD
The technical picture shows the pair gaining bearish tone in the 4 hours chart, with the upside capped by 20 SMA and indicators heading south below their midlines, despite market mood is in general positive ahead of the FOMC. 1.5610/20 area offers strong support for the upcoming hours, as per yesterdays’ low at 1.5624, and 200 EMA in the 4 hours chart around 1.5610: a break below this last should point for a bearish acceleration towards the 1.5550 level if dollar is able to gain track over after the FED. To the upside, 1.5660 comes as immediate resistance, followed by 1.5700 price zone, which will probably attract sellers if reached. Steady gains above 1.5710 are required to deny the bearish tone, with a break above 1.5730 pointing for a retest of 1.5770 price zone.
View Live Chart for GBP/USD
