GBP/USD on a slippery slope

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet notes that the pound has continued slide.

Key Quotes:

“Starting with the European opening extended all through the American session, with the pair quoting at a fresh 6-month low and about to challenge last March one at 1.6465 ahead of Asian opening”.

“Despite UK Construction PMI surged to levels not seen since January this year, the pair sunk on growing concerns Scotland might actually vote for its independence later this month”.

“Technically, the short term picture shows indicators heading lower in extreme oversold levels, while 20 SMA maintains a strong bearish slope well above current price. In the 4 hours chart momentum remains vertical, while RSI stands at 24.7 both holding to the strong bearish tone”.

“The strong rejection from the daily descendant trend line coming from this year high towards new lows, suggests the bearish trend underway may remain healthy for longer than initially expected, eyeing midterm a test of 1.6250 price zone”.

“Support levels: 1.6465 1.6435 1.6400”.

“Resistance levels: 1.6510 1.6540 1.6585”.