Pound Finally Halts 6-Day Long Losing Streak

The British Pound finally put a green candle against the greenback, snapping a 6-day steady decline.

Nevertheless, the daily chart shows that the pair has set a lower low and a lower high, which suggest the recovery is mostly corrective than a confirmed bottom.

The pair fell to a fresh 3-month low of 1.5253 during the European session, following the release of Britain’s Markit Construction PMI for August that resulted at 57.3 against expectations of 57.5 and previous 57.1.

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The short term technical outlook, however, is far from suggesting the intraday rally may extend, as the 1 hour chart shows that the price is barely above a horizontal 20 SMA, whilst the Momentum indicator holds flat around its 100 level and the RSI indicator turns lower around 53.

In the 4 hours chart the 20 SMA is partially losing its bearish strength, but heads lower around 1.5360, providing a strong intraday resistance, whilst the Momentum indicator heads higher below the 100 level and the RSI indicator bounces from oversold levels, but is also far from supporting a continued advance.

Support levels: 1.5290 1.5250 1.5220

Resistance levels: 1.5330 1.5360 1.5400

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