GBP/USD dumps on Trump's statement that Mnuchin taken out of context
- GBP/USD tumbles on Trump.
- GBP/USD testing 50-hr SMA.
GBP/USD has dumped on the back of Trump's statement that he made saying that he wants a stronger dollar and that Mnuchin's comments were taken out of context. Currently, GBP/USD is trading at 1.4191 having posted a daily high at 1.4347 and low at 1.4181.
GBP/USD had been as high as 1.4347 on the back of the ECB today when Draghi failed those who had positioned for some jawboning around the strength of the euro that sent the dollar off another cliff down the mountain.
Fundamentals still hold up for the pound
Prior to today's ECB event, it was the UK employment data, ex-bonus wages, that at arrived 102K for the quarter vs -13k Reuters poll forecasted which had propelled the pound higher this week, (BoE to hike soon?), before Mnuchin's comment that a weak dollar was ultimately good for the US in the short term.
GBP/USD levels
while the short-term outlook on the hourly sticks may be bearish with RSI some way to go until oversold territory and a break of the 50-hr SMA at 1.4168, Technicals continue to lean bullish while the price remains above the monthly 10 and 21 SMA's with the 10 crossing up through the 21. However, a break below 1.40 would open 1.3968/70 ahead of a deeper correction to 1.3892 and 1.3820 that are next key supports. Overall, GBP/USD remains better bid while trading above 1.3658/71 as the September highs and a double Fibonacci retracement area.