Pound Rebounds As 1.5200 Hurdle Remains Intact
The GBP/USD pair traded in quite a limited range yesterday, having extending its monthly decline by a few pips, reaching a fresh low of 1.5128, before bouncing some.
Earlier in the day, the pair tried to advanced on an improvement in market sentiment, but selling interest contained the rally around the 1.5200 figure.
In the UK, mortgage lending surged in August, rising by the most since May 2008 and reaching 71,030. Net lending to individuals reached £4.3B, favored by low interest rates, and latest BOE’s comments as the central bank’s Financial Policy Committee has said that it does not expect the growth in the housing sector to undermine the financial stability.
Technically, the 1 hour chart presents a mild negative tone, as the price develops below its 20 SMA and the technical indicators present mild bearish slopes below their mid-lines, albeit none showing actual strength.
In the 4 hours chart, the technical indicators bounce higher, but remain below their mid-lines, whilst the 20 SMA maintains a strong bearish slope above the current level, all of which maintains the risk towards the downside.