GBP/USD: looking bearish below 20 sma on 4hr sticks - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained the British Pound erased most of its weekly gains against the greenback, weighed by dismal UK data and comments from BOE's Governor Carney, at a parliamentary hearing.

Key Quotes:

"Industrial Production in the kingdom advanced by 0.1% during July, while Manufacturing Production fell by 0.9% in the same month. As for Governor Carney, he was questioned by lawmakers about making  the decision to provide more stimulus right after the Brexit referendum, given that  the economy has been quite resilient to the news, but he said he is quite comfortable with such decision, and that it was that decision which avoided a deeper economic chaos.

The GBP/USD pair fell down to 1.3318 during the American session, meeting some short term buying interest around the key Fibonacci support, but looking increasingly bearish in the 4 hours chart, as the bounce has been shallow, while the price remains below its 20 SMA.

In the same chart, technical indicators present sharp bearish slopes and are about to cross their mid-lines towards the downside. A downward extension beyond 1.3320, should favor further slides for this Thursday, with scope to return to the 1.3250 region, where the next batch of buying is waiting.