BOE deputy Shafik’s dovish statements has caused the sterling pound to be weighed down, after Shafik stated that the central bank requires more economic stimulus, and the bank is willing to widen its asset purchase program if ever the need arises.
The technical trend for the currency pair is mainly bearish since a lot of sellers are holding fast to their current positions. The GBP/USD exhibited volatile and low trading points during Wednesday’s session, with the price staying within the 1.3000 range for buyers. The pair’s growth was somewhat hindered by a bearish 50 EMA, while the 50, 100, and 200 EMA are still steadily declining. Resistance levels are currently at 1.3000 while support levels are at 1.2900.
MACD levels are presently in the negative side, with MACD’s growth indicative of a weakening of sellers’ positions. Meanwhile, RSI levels are expected to go within the overbought range. The general outlook for the currency pair is bearish, with an expected drop towards the 1.2950 range. However, speculators are also expecting an upsurge to the 1.3100 trading range.
Andrea ForexMart, Official Representative