GBP/USD trading in a tight range on Monday - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik notes that GBP/USD trading in a tight 20 pips range on Monday, close to the 2-month low of 1.6766 seen last Friday.

Key quotes

"There is no technical evidence of a bottom: the 4 hours chart shows 20 SMA maintaining a strong bearish slope above current price, while indicators rest flat near oversold levels."

"From the fundamental side, Wednesday will be a critical day for the United Kingdom, with monthly employment figures and Inflation headings with BOE’s governor Carney, and it won’t be a surprise if the pair remains quiet until then."

"Nevertheless, a price acceleration below 1.6766 mentioned low should lead to a continued fall towards 1.6700/20 price zone, while the 1.6800 figure stands as immediate resistance."

"Steady gains above the level should lead to a test of a long term descendant trend line coming from this year high, today at 1.6840."