FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the British Pound fell down to a fresh 8-month low of 1.4784 against the greenback.
“Once again, there was no clear catalyst behind the move, except by the extension of the dominant bearish trend, as there were no fundamental releases in the UK and the decline took place before the release of better-than-expected US consumer confidence.”
“The daily decline reached the base of the descendant channel in which the pair has been developing since mid September, and the risk remains towards the downside for the upcoming sessions, although choppy trading will prevail until next week.
As for the technical outlook, the 4 hours chart shows that the price is well below a now bearish 20 SMA, while the technical indicators have lost their bearish strength, but turned flat near oversold levels, rather consolidating than suggesting an upward move ahead. Renewed selling interest below the mentioned low, should see the pair extending its decline down to the 1.4700 figure, en route to 1.4562, this year low.”
Valeria Bednarik, chief analyst at FXStreet explained that the British Pound fell down to a fresh 8-month low of 1.4784 against the greenback.
(Market News Provided by FXstreet)