GBP/USD falls on Moody's downgrading the outlook for UK's banking system - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik points out that the rally in GBP/USD to 1.6888 seen in the European morning, on better than expected UK data, was reversed by Moody's announcement of changing the outlook for UK's banking system from stable to negative.

Key quotes

"The pair gave back most of its intraday gains, with the hourly chart showing price struggling around its 20 SMA and indicators heading lower, approaching their midlines."

"In the 4 hours chart indicators corrected oversold readings, but now retrace from their midlines, while price halted a couple pips below the 23.6% retracement of the latest bearish run, suggesting upward potential is limited."