19 Jul 2013
GBP/USD consolidating around 1.5260
FXstreet.com (Edinburgh) - The GBP/USD is now trading in a narrow range around 1.5260 on Friday, consolidating the weekly gains in a context dominated by the lack of volatility and thin trade.
GBP/USD retracing June losses
In the same line as its European counterpart, the pound is retracing the pronounced decline from 1.5750 to fresh 2013 lows around 1.4815 in early July, advancing for two straight weeks. The better tone from the BoE minutes, an overall dovish bias from Bernanke and the resurgence of the risk-on trade were the main catalyst of the bull run. According to Karen Jones, Head of FICC Technical Analyst at Commerzbank, “We continue to view the rebound from support as corrective and Elliot wave counts on the 240 minute chart suggest the rally will fail circa around the more important 1.5305 level (current July high)”.
GBP/USD levels to watch
The pair is now advancing 0.21% at 1.5259 facing the next hurdle at 1.5284 (38.2% of 1.4832-1.5753) followed by 1.5305 (high Jul.3) and then 1.5323 (MA30d). On the flip side, a breakdown of 1.5173 (38.2% of 1.5753-1.4814) would open the door to 1.5158 (low Jul.18) and finally 1.5112 (MA10d).
GBP/USD retracing June losses
In the same line as its European counterpart, the pound is retracing the pronounced decline from 1.5750 to fresh 2013 lows around 1.4815 in early July, advancing for two straight weeks. The better tone from the BoE minutes, an overall dovish bias from Bernanke and the resurgence of the risk-on trade were the main catalyst of the bull run. According to Karen Jones, Head of FICC Technical Analyst at Commerzbank, “We continue to view the rebound from support as corrective and Elliot wave counts on the 240 minute chart suggest the rally will fail circa around the more important 1.5305 level (current July high)”.
GBP/USD levels to watch
The pair is now advancing 0.21% at 1.5259 facing the next hurdle at 1.5284 (38.2% of 1.4832-1.5753) followed by 1.5305 (high Jul.3) and then 1.5323 (MA30d). On the flip side, a breakdown of 1.5173 (38.2% of 1.5753-1.4814) would open the door to 1.5158 (low Jul.18) and finally 1.5112 (MA10d).