11 Oct 2013
GBP/USD testing weekly lows sub-1.5930
FXstreet.com (Edinburgh) -The selling interest is now intensifying around the sterling, dragging the GBP/USD to test the area of multi-week lows below 1.5930.
GBP/USD remains vulnerable
The offered tone around the pound was present since the very beginning of the week, with traders taking profit from recent sharp gains. Horrible industrial figures in the UK during August just accentuated the downside, ignoring the inaction from the BoE’s meeting on Thursday. In the opinion of BBH Global Currency Strategy Team, “We identified a potential topping pattern in sterling at mid-week and noted that often the neckline is retested. Sterling has moved above the neckline, which we had identified near $1.5950. However, the pattern is not negated and we expect resistance to be encountered in the $1.6020-45 area”.
GBP/USD key levels
The pair is now losing 0.24% at 1.5929 with the immediate support at 1.5914 (low Oct.10) ahead of 1.5893 (low Sep.18) and finally 1.5869 (low Sep.16). On the flip side, a break above 1.6049 (MA21d) would clear the way to 1.6086 (MA10d) and then 1.6122 (high Oct.9).
GBP/USD remains vulnerable
The offered tone around the pound was present since the very beginning of the week, with traders taking profit from recent sharp gains. Horrible industrial figures in the UK during August just accentuated the downside, ignoring the inaction from the BoE’s meeting on Thursday. In the opinion of BBH Global Currency Strategy Team, “We identified a potential topping pattern in sterling at mid-week and noted that often the neckline is retested. Sterling has moved above the neckline, which we had identified near $1.5950. However, the pattern is not negated and we expect resistance to be encountered in the $1.6020-45 area”.
GBP/USD key levels
The pair is now losing 0.24% at 1.5929 with the immediate support at 1.5914 (low Oct.10) ahead of 1.5893 (low Sep.18) and finally 1.5869 (low Sep.16). On the flip side, a break above 1.6049 (MA21d) would clear the way to 1.6086 (MA10d) and then 1.6122 (high Oct.9).