06/05/15 GBPDUSD traded higher despite poor economic data

060515 GbpUsd Daily

GBPDUSD traded higher despite poor economic data. The British Pound traded higher on Tuesday despite weaker than expected construction activity. Interestingly, price pattern is not corresponding to accordance, coupled with the fact that the U.K. election is close. Rising to the high 1.5220, candlesticks did formed near the 120 days EMA area briefly before pulling back to hold at 1.5180. Despite the climb overnight, technical pattern on the daily chart continues to be in a bearish pose. Without any impulsive boost, more is expected of the British Pound to fall lower with further weakness ahead.

060515 GbpUsd H4

Declining in earlier session of the day, Sterling managed to recover in late trading, rising above the 38.20% Fibonacci Retracement mark to the high at 1.5220. Preventing the pair from falling deeper, the British Pound is currently stabilized at 1.5170, stuck between the 20 SMA and 55 EMA line. In our opinion, the pound is still consolidating, with the overnight gain witnessed more of a correctional wave scenario. Without the actual surge towards 1.5300, a dip towards 1.50 is practically visible. Any move lower beyond that would see a price action falling further towards 1.4950.

060515 GbpUsd H1

Despite the modest gain recorded yesterday, the slide after the recent reversal at 1.5500 is still underway with the immediate support coming at 1.5090. At the moment the upside attempts in Cable are seen limited at 1.5220 area as price action barely move beyond the 161.80% Fibonacci Expansion region. With two days to before the UK’s general election, the political uncertainties anchor the GBP complex to be on the downside with analyst calling for the pair to continue falling.

Trend Direction
Slightly Bearish 1.4950 1.5030 1.5090 1.5260 1.5300 1.5390

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