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.
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