GWFX Global: GBP/USD struggling to build a base above 1.2600
GBP/USD continues to trade within the 1.2600 range, lifting to 1.2680 in early Wednesday trading, suffering a hit and sliding to 1.2600 after UK inflation slumped to a two-year low with annualized CPI clocking in at 2.3%.
After the FOMC decision, the GBP/USD pair lost little ground, now trading around 1.2625, offering a neutral-to-bearish stance in the short term, given that, in the 4 hours chart, its hovering around a directionless 20 SMA and still well below a bearish 200 EMA, while technical indicators turned lower, now piercing their midlines. The Sterling continues to be dependent on Brexit-related headlines, with speculative interest not interested in the pair unless some news from that front. The risk weekly low has been set at 1.2554, with chances of a downward move increasing on a break below it.
Support levels: 1.2590 1.2555 1.2510
Resistance levels: 1.2660 1.2695 1.2730
After the FOMC decision, the GBP/USD pair lost little ground, now trading around 1.2625, offering a neutral-to-bearish stance in the short term, given that, in the 4 hours chart, its hovering around a directionless 20 SMA and still well below a bearish 200 EMA, while technical indicators turned lower, now piercing their midlines. The Sterling continues to be dependent on Brexit-related headlines, with speculative interest not interested in the pair unless some news from that front. The risk weekly low has been set at 1.2554, with chances of a downward move increasing on a break below it.
Support levels: 1.2590 1.2555 1.2510
Resistance levels: 1.2660 1.2695 1.2730