GBP/USD Technical Analysis: February 7, 2017
The British currency continued to gain losses on Monday on the back of BoE’s no rush decision regarding rate hikes coupled with the Inflation Report since the previous week
The sterling had a mixed trades yesterday. Moreover, the GBP/USD weakened during the morning trades and continued to move downwards.
A renewed buying interest occurred amid opening of EU trades which further provided support to the spot. The cable got a stable position throughout the European session and hold a few pips under the region 1.2500 prior to the onset of NA trading. As shown in the 4-hour chart, the price drove the 50-EMA lower and hovered on top of 200 and 100 EMAs. The 100-EMA is moving northbound while the 50 and 200-EMAs stayed in the neutral stance mentioned in the same timeframe. Resistance is at 1.2500, support sits close the 1.2400 handle.
The MACD approached the negative zone, sustaining this position would indicate a stronger position for the sellers. RSI is confined around the oversold area near the neutral readings.
In spite of the decline that recently occurred, the bullish trend was able to maintain its progress. A close under the mark 1.2500 would signal a renewed bearish outlook and has the possibility to advance towards 1.2400 hurdle. Contrarily, a close on top of 1.2500 would retake a bullish sentiment to the cable pair. The spot is possible to recover in the short-term 1.2600.