28 Oct 2013
GBP/USD consolidates around 1.6180 area, awaiting the severe storm in UK
FXstreet.com (Athens) – The GBP/USD has been trading slightly upwards but mostly sidelines since the kick off of the Asian trading session, while UK will be impacted by an unusual, severe storm.
GBP/USD hovers around 1.6180; liquidity will be probably thin in UK amidst of the storm
The GBP/USD is trading at late Asian trading session at a very tight range around 1.6180. Earlier, we had the UK data release of Hometrack Housing Prices pertaining to October, which came in exact lines with the estimations. Elsewhere, today we will have the release of the US official data of pending home sales as well as of industrial production regarding for September, as the US data remain still well in a catch-up mode after 16 days of the government’s shutdown. What’s more, we will have the release of the Dallas Fed Manufacturing Activity, but the major key driver will be the thin liquidity of the UK markets due to the emerging severe storm. All in all, it might be a light start of the week, ahead of the highlight FOMC meeting on Wednesday and the well below usual liquidity in UK.
Technical Perspective on GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD is buttressed against the 1.6259 early October high. This together with the 1.6302/69 2012 highs and 2009-13 resistance line should act in unison to offer some tough overhead resistance for the market. We are alert to failure at this critical zone and note the 13 count on the daily chart from the TD combo indicator (TD resistance lies at 1.6335).”
GBP/USD hovers around 1.6180; liquidity will be probably thin in UK amidst of the storm
The GBP/USD is trading at late Asian trading session at a very tight range around 1.6180. Earlier, we had the UK data release of Hometrack Housing Prices pertaining to October, which came in exact lines with the estimations. Elsewhere, today we will have the release of the US official data of pending home sales as well as of industrial production regarding for September, as the US data remain still well in a catch-up mode after 16 days of the government’s shutdown. What’s more, we will have the release of the Dallas Fed Manufacturing Activity, but the major key driver will be the thin liquidity of the UK markets due to the emerging severe storm. All in all, it might be a light start of the week, ahead of the highlight FOMC meeting on Wednesday and the well below usual liquidity in UK.
Technical Perspective on GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD is buttressed against the 1.6259 early October high. This together with the 1.6302/69 2012 highs and 2009-13 resistance line should act in unison to offer some tough overhead resistance for the market. We are alert to failure at this critical zone and note the 13 count on the daily chart from the TD combo indicator (TD resistance lies at 1.6335).”