The GBP/USD pair trades near is weekly low of 1.5259, maintaining its bearish dominant tone below the 1.5300 figure. Having erased all of its post-elections gains, the British Pound has shed almost 250 pips this week, with no corrective movements in the way.
The market is waiting for the release of the US GDP figures, expected to reflect a deeper economic contraction in the US during the first three months of this 2015. In the meantime, the 4 hours chart shows that the 20 SMA has extended its decline down to converge with the 200 EMA, both around 1.5350, providing a strong intraday dynamic resistance. In the same chart, the technical indicators maintain a negative tone, with the RSI indicator heading lower around 32 and the Momentum indicator lacks direction in negative territory.
A disappointing reading in the US data can boost the pair up to the 1.5350/60 region, while an extension beyond this last exposes the pair to a test of the 1.5400 level. A downward acceleration below 1.5260 on the other hand, should see the pair accelerating its decline towards the 1.5200 region.
View live chart of the GBP/USD
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