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18 Dec 2015
GBP/USD: sold to 8-month lows - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained investors kept selling the Pound all day long, and despite the UK Retail Sales figures resulted better-than-expected.
Key Quotes:
"In fact, the release of November data, showing that sales grew by 1.7% compared to October, and by 5.0% in a year-on-year comparison, sent the GBP/USD pair up to a daily high of 1.5007, giving sellers the perfect opportunity to jump into dollar's strength, as the pair shed over 50 pips in a few minutes, and extended its decline further lower afterwards.
The pair stands at a fresh 8-month low and with the intraday technical readings showing that the bearish pressure remains intact, as the technical indicators in the 1 hour chart, show no aim of turning higher and continue heading south near oversold levels.
In the 4 hours chart, the technical indicators are losing their bearish strength, but remain in oversold territory. Should the price fall below 1.4850, further falls are to be expected, initially towards the 1.4780 region."
Key Quotes:
"In fact, the release of November data, showing that sales grew by 1.7% compared to October, and by 5.0% in a year-on-year comparison, sent the GBP/USD pair up to a daily high of 1.5007, giving sellers the perfect opportunity to jump into dollar's strength, as the pair shed over 50 pips in a few minutes, and extended its decline further lower afterwards.
The pair stands at a fresh 8-month low and with the intraday technical readings showing that the bearish pressure remains intact, as the technical indicators in the 1 hour chart, show no aim of turning higher and continue heading south near oversold levels.
In the 4 hours chart, the technical indicators are losing their bearish strength, but remain in oversold territory. Should the price fall below 1.4850, further falls are to be expected, initially towards the 1.4780 region."