13 Sep 2013
GBP/USD strong above 7-month peaks; holds on to 1.58
FXstreet.com (Chicago) - GBP/USD holds on to 7-month altitudes as the pound resists bearish pressure and finds grounds around 1.58 zone. The pair peaked to 1.5818 earlier today and registers minimal 0.01% losses so far, minutes away from Tokyo’s opening and the start of the last trading day of the week.
7-month altitudes – the pressure is on the dollar
Price action reveals a primary and secondary trends pointing up. The pair extends the bullish channel on last early July reversal. Despite being capped around the 1.5830 zone, the pair is able to sustain performance and holds on to key zone at 1.58. Higher lows indicate the potential consolidation of a continuous strengthening of the sterling against the greenback, under pressure for the rest of the week and next week. Indeed, Fed’s potential tapering and the rumors of a $10B reduction have spread across the markets. If the tapering is less, the dollar may decline whereas a larger reduction will favor the greenback. With no official data due Friday, any major movement is expected to be triggered by the results of retail sales data , producer price indexes, and the Reuters/Michigan consumer sentiment index in the US.
GBP/USD Technical Levels
Aligned with larger timeframe trends, the short-term trend for the pair is upward. The bullish channel remains intact and the manifestation of two spikes (September 11th and September 12th) reveal bullish and impulsive pressure. After retracing for a few hours in the afternoon of the American trading session, the pair holds on to key psychological 1.58 zone. On the downside, supports are aligned at 1.5775 (February 7th highs), 1.5739 (June 14th highs) followed by 1.5682 (September 8th highs) while the upside marks resistances at 1.5813 (February 12th highs), 1.5843 (February 10th highs) ahead of 1.5876 (January 30th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and is offered below the EMA20.
7-month altitudes – the pressure is on the dollar
Price action reveals a primary and secondary trends pointing up. The pair extends the bullish channel on last early July reversal. Despite being capped around the 1.5830 zone, the pair is able to sustain performance and holds on to key zone at 1.58. Higher lows indicate the potential consolidation of a continuous strengthening of the sterling against the greenback, under pressure for the rest of the week and next week. Indeed, Fed’s potential tapering and the rumors of a $10B reduction have spread across the markets. If the tapering is less, the dollar may decline whereas a larger reduction will favor the greenback. With no official data due Friday, any major movement is expected to be triggered by the results of retail sales data , producer price indexes, and the Reuters/Michigan consumer sentiment index in the US.
GBP/USD Technical Levels
Aligned with larger timeframe trends, the short-term trend for the pair is upward. The bullish channel remains intact and the manifestation of two spikes (September 11th and September 12th) reveal bullish and impulsive pressure. After retracing for a few hours in the afternoon of the American trading session, the pair holds on to key psychological 1.58 zone. On the downside, supports are aligned at 1.5775 (February 7th highs), 1.5739 (June 14th highs) followed by 1.5682 (September 8th highs) while the upside marks resistances at 1.5813 (February 12th highs), 1.5843 (February 10th highs) ahead of 1.5876 (January 30th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and is offered below the EMA20.