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GBP/USD: 200 EMA exposed; Worrisome for bulls – FXStreet


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FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD failed to hold to the gains achieved on Thursday following the release of up beating Retail Sales in the UK, losing almost 200 pips on Friday, amid broad dollar’s strength.

Key Quotes:


“The Pound however, declined at a slower pace than any other currency against the greenback on weekly basis, as the Bank of England is expected to follow the FED in the tightening path, but by 2016.”


“The GBP/USD pair 4 hours chart shows that the price is now developing below its 20 SMA, now flat around 1.5580, whilst the 200 EMA provides a strong mid-term support for this week in the 1.5340 region.”


“The Momentum indicator in the mentioned time frame maintains a strong bearish slope below its 100 level, whilst the RSI indicator is losing its downward strength around 36, far from suggesting a short term upcoming reversal in the ongoing direction.”


“The weekly low stands at 1.5445, the immediate short term support, and a break below it should lead to a decline towards the mentioned 200 EMA around 1.5340 this Monday.”