9 Jul 2013
GBP/USD bouncing off lows
FXstreet.com (Edinburgh) - After testing 2013 lows around 1.4830, the GBP/USD managed to gather pace and rebound to the current area of 1.4875/80 on Tuesday.
GBP/USD now eyes 1.4900
The current bounce is lifting the pair towards the next resistance at 1.4900, as traders continue to digest the lackluster data from the British economy that pushed the pair to the brink of 2013 lows. According to Jane Foley, Strategist at Rabobank, “From a technical perspective a break below here would increase the chances of another leg down towards the 1.4250 area which hasn’t been seen since 2010. However, we doubt if there is currently the appetite in the market to trigger a sharp move lower in cable from current levels… For now we would favour buying cable on dips”.
GBP/USD levels to watch
As of writing the pair is down 0.58% at 1.4864 with the next support at 1.4832 (2013 low Mar.12) ahead of 1.4803 (low Jun.23 2010) and finally 1.4688 (low Jun.22 2010). On the flip side, a breakout of 1.4980 (high Jul.9) would target 1.500 (psychological level) en route to 1.5077 (high Jul.5).
GBP/USD now eyes 1.4900
The current bounce is lifting the pair towards the next resistance at 1.4900, as traders continue to digest the lackluster data from the British economy that pushed the pair to the brink of 2013 lows. According to Jane Foley, Strategist at Rabobank, “From a technical perspective a break below here would increase the chances of another leg down towards the 1.4250 area which hasn’t been seen since 2010. However, we doubt if there is currently the appetite in the market to trigger a sharp move lower in cable from current levels… For now we would favour buying cable on dips”.
GBP/USD levels to watch
As of writing the pair is down 0.58% at 1.4864 with the next support at 1.4832 (2013 low Mar.12) ahead of 1.4803 (low Jun.23 2010) and finally 1.4688 (low Jun.22 2010). On the flip side, a breakout of 1.4980 (high Jul.9) would target 1.500 (psychological level) en route to 1.5077 (high Jul.5).