Sterling was the show overnight - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted that the pound had it tough on Wednesday, finally capitulating to fresh year lows on the back of late dollar strength.

Key Quotes:

“Earlier on the day, UK employment figures resulted weaker than expected, yet a small tick in wages saved the pair from nose diving; and hour later however, BoE’s Quarterly Inflation Report surprised to the downside, with a forecast of inflation below 1% for the upcoming 6 months, and seen returning to normal in three years: rate hikes as for investors, has been took out of the picture”.

“Technically, the pair stands a few pips below previous year low, pressuring the key midterm strong static support around 1.5770, with the 1 hour chart showing indicators heading strongly south near oversold territory and 20 SMA gaining bearish slope well above current price”.

“In the 4 hours chart price accelerated through a still flat 20 SMA but indicators present a clear bearish momentum, suggesting some downward continuation in the short term”.

“Clear break below mentioned level however, should open doors for some further slides in term, eyeing then the 1.5500 figure as next probable target”.