Cable Plunges On 10th Consecutive Day, What Next?
The British Pound edged lower for a tenth day in a row against its American rival, with the pair extending its decline to a fresh 4-month low of 1.5106.
Earlier on Wednesday, the UK released the latest review of its Q2 GDP, which came as expected at 0.7%. Yearly basis, growth reached 2.4%, missing expectations of 2.6%. A positive surprise came from the current account deficit that narrowed to £16.8B from a revised £24B in Q1.
Following the release, the GBP/USD pair advanced up to its daily high of 1.5213, where once again, selling interest contained the advance. The downward movement seems overdone, but there is no technical signal of a change in the ongoing bearish trend.
In short term, the 1 hour chart shows that the price is now below a mild bearish 20 SMA, whilst the technical indicators have recovered some from oversold territory, but turned flat well below their mid-lines.
In the 4 hours chart, the 20 SMA maintains its bearish slope above the current level, whilst the technical indicators have been rejected from their mid-lines, and head lower, supporting further declines on renewed selling interest below the 1.5130 level.