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Market Analysis

Home » Featured » GBPUSD – Slow and Steady Downtrend

GBPUSD – Slow and Steady Downtrend

Posted by FXTimes in Featured - October 29th, 2015 11:12 am GMT

GBPJPY British Pound

Key Points

  • British Pound fell against the US Dollar, and it looks like that there is no stopping sellers in the near term.
  • There are many hurdles for sellers including a bearish trend line and an expanding triangle on the hourly chart.
  • UK Consumer Credit released by the Bank of England posted a reading of £1.261B in September 2015, which was higher compared with the forecast of £1.100B.
  • On the other hand, the UK Mortgage Approvals came below the forecast and registered a reading of 68.874K.

Technical Analysis

The GBPUSD pair recently traded lower and tested a major support area of 1.5250 where buyers are fighting to prevent the downside. There is an expanding triangle pattern on the hourly chart, which might act as a resistance moving ahead and stall gains.

GBPUSD

Moreover, there is a bearish trend line formed on the hourly chart that is positioned with the 100 MA. It means there are many barriers for buyers on the way up and it won’t be easy for them to take the pair higher.

On the downside, the 1.5250 area is a major support area moving ahead.

UK Consumer Credit and Mortgage Approvals

Today, there were a couple of releases lined up in the UK, including the Consumer Credit and Mortgage Approvals. The Consumer Credit, which is an amount of money that individuals borrowed in the previous month was released by the Bank of England.

The forecast was lined up for £1.100B in September 2015, but the result was £1.261B. On the other hand, the Mortgage Approvals presenting the number of various Mortgage Approvals posted a lower than expected reading and came in at 68.874K.

Overall, there was hardly any relief for the GBPUSD buyers, as the pair was seen under the bearish pressure which might increase over time.

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