GBP/USD: easing towards 1.5060

by Admin

Dollar advance accelerates today across the board, as risk aversion dominates the scene: European stocks sunk into deep red as data around Europe disappoints while market rumors on an Italian downgrade extend. In the UK, Current Account deficit improved less than expected, from £-15.074B to £-14.037B, sending GBP/USD down towards 1.5110 daily low and static support area. The 4 hours chart shows an increasing bearish momentum, with price capped below 20 SMA that now offers dynamic resistance around 1.5170. The pair now has scope to extend its slide up to the 1.5050/60 area, next strong support level, while if this last gives up, market players will be eyeing 1.4980.

Recoveries above 1.5140 may see the pair attempt a short term recovery back towards mentioned 1.5170, although selling interest should halt the recovery around this last. 

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