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14 May 2015
GBP/USD: Bullish trend remains dominant - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the British Pound advanced for seventh day-in-a-row against the dollar, with the pair reaching yet another year high of 1.5768.
Key Quotes:
"Earlier in the day, the UK monthly employment data showed that the unemployment rate fell down to 5.5%, the lower since mid-2008, while wages increased more than expected, boosting the local currency."
"But at the same time, the Bank of England inflation report release afterwards, showed the Central Bank decided to cut its growth forecasts for the economy, whilst it does not expect inflation to reach its 2.0% target until 2017."
"Officers however, added that they are still on course to raise rates in the middle of 2016. The GBP/USD suffered a temporal knee-jerk, but tepid US data sent it back higher."
"Technically, and despite overbought readings, the upside remains favored, albeit a downward corrective movement should not be disregarded."
"The 1 hour chart shows that the price remains above a bullish 20 SMA, whilst the technical indicators are turning slightly lower above their mid-lines, reflecting the ongoing consolidation near the highs."
"In the 4 hours chart the 20 SMA maintains its bullish slope now around 1.5580 whilst the Momentum indicator turned lower well above 100 and the RSI indicator holds around 79, supporting the dominant bullish trend."
Key Quotes:
"Earlier in the day, the UK monthly employment data showed that the unemployment rate fell down to 5.5%, the lower since mid-2008, while wages increased more than expected, boosting the local currency."
"But at the same time, the Bank of England inflation report release afterwards, showed the Central Bank decided to cut its growth forecasts for the economy, whilst it does not expect inflation to reach its 2.0% target until 2017."
"Officers however, added that they are still on course to raise rates in the middle of 2016. The GBP/USD suffered a temporal knee-jerk, but tepid US data sent it back higher."
"Technically, and despite overbought readings, the upside remains favored, albeit a downward corrective movement should not be disregarded."
"The 1 hour chart shows that the price remains above a bullish 20 SMA, whilst the technical indicators are turning slightly lower above their mid-lines, reflecting the ongoing consolidation near the highs."
"In the 4 hours chart the 20 SMA maintains its bullish slope now around 1.5580 whilst the Momentum indicator turned lower well above 100 and the RSI indicator holds around 79, supporting the dominant bullish trend."