GBP/USD Technical Analysis 9 Dec 2015

pound-out-look

The GBP/USD pair edged lower for a third day in-a-row, having fell down to 1.4955 before recovering the 1.5000 level before the US close. The British Pound was weighed by falling oil prices, and worse-than-expected UK factory output, down in October by 0.1%. Industrial Production grew slightly above expected,  not enough, however, to help the currency advance.

The pair enters the Asian session correcting its short term oversold readings, but maintaining a bearish tone, given that in the 1 hour chart, the technical indicators have bounced from extreme readings, but are now losing upward strength below their mid-lines, whilst the price remains well below a bearish 20 SMA.

In the  4 hours chart, the price is below the 20 SMA, while the technical indicators are aiming higher from near oversold territory, but remain well into negative territory and unable to confirm a clear directional strength.

Support levels: 1.4950 1.4920 1.4880

Resistance levels: 1.5010 1.5050 1.5090

 

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