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12 Sep 2013
GBP/USD retracing post-Carney spike
FXstreet.com (Edinburgh) -The bearishness surrounding the sterling is gathering traction now, with the GBP/USD mostly retracing the spike to 1.5830 post-Carney speech.
GBP/USD back below 1.5800
The pair is now threatening to break below the key support at 1.5800 despite the prevailing risk-on tone in the markets and Carney’s tone tilted to the hawkish side. “Bias had been that GBP was forming a tight trading range between effectively 1.50 and 1.58 and the slippage into September was likely to trigger a slide to redefine range support. However, rising channel support was not broken and the strength of the rebounds through 1.5600 (a pivot level now) continues. Potential is now building for a measured squeeze, through 1.5780, to the 1.6060-80 area”, observed Tim Riddell, Head of Global Markets Research at ANZ.
GBP/USD levels to watch
The pair is now losing 0.09% at 1.5809 and a breach of 1.5719 (low Sep.11) would target 1.5686 (low Sep.10) en route to 1.5651 (MA10d). On the upside, the next resistance aligns at 1.5832 (high Sep.12) ahead of 1.5845 (high Feb.8) and then 1.5879 (high Feb.1).
GBP/USD back below 1.5800
The pair is now threatening to break below the key support at 1.5800 despite the prevailing risk-on tone in the markets and Carney’s tone tilted to the hawkish side. “Bias had been that GBP was forming a tight trading range between effectively 1.50 and 1.58 and the slippage into September was likely to trigger a slide to redefine range support. However, rising channel support was not broken and the strength of the rebounds through 1.5600 (a pivot level now) continues. Potential is now building for a measured squeeze, through 1.5780, to the 1.6060-80 area”, observed Tim Riddell, Head of Global Markets Research at ANZ.
GBP/USD levels to watch
The pair is now losing 0.09% at 1.5809 and a breach of 1.5719 (low Sep.11) would target 1.5686 (low Sep.10) en route to 1.5651 (MA10d). On the upside, the next resistance aligns at 1.5832 (high Sep.12) ahead of 1.5845 (high Feb.8) and then 1.5879 (high Feb.1).