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25 Nov 2013
GBP/USD testing the 1.6200 handle
FXstreet.com (Edinburgh) - The sterling is trading on the back footing at the beginning of the week, dragging the GBP/USD to challenge the key support at 1.6200.
GBP/USD vs. interesting week ahead
The pair continues to be well bid despite today’s correction, advancing for the last three weeks from levels as low as 1.5860 to overnight tops near 1.6240. Ahead in the week, housing data will be in the spotlight as well as the Financial Stability Report and the preliminary GDP figures for the third quarter. Consensus expects the British economy to have expanded 0.8% inter-quarter vs. 0.7% from Q2. Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “ground higher all week and continues to trade in the upper half of its 2 month trading range. We are not clear at this stage if this is a potential top or not but we are biased towards the top theory, given the 4 year downtrend is located just above here at 1.6301”
GBP/USD critical levels
As of writing the pair is down 0.06% at 1.6206 and a break below 1.6178 (low Nov.22) would open the door to 1.6154 (MA50h) and then 1.6100 (psychological level). On the flip side, the initial hurdle aligns at 1.6219 (high Nov.22) followed by 1.6248 (high Oct.25) and then 1.6260 (high Oct.1).
GBP/USD vs. interesting week ahead
The pair continues to be well bid despite today’s correction, advancing for the last three weeks from levels as low as 1.5860 to overnight tops near 1.6240. Ahead in the week, housing data will be in the spotlight as well as the Financial Stability Report and the preliminary GDP figures for the third quarter. Consensus expects the British economy to have expanded 0.8% inter-quarter vs. 0.7% from Q2. Karen Jones, Head of FICC Technical Analysis at Commerzbank, argued the pair “ground higher all week and continues to trade in the upper half of its 2 month trading range. We are not clear at this stage if this is a potential top or not but we are biased towards the top theory, given the 4 year downtrend is located just above here at 1.6301”
GBP/USD critical levels
As of writing the pair is down 0.06% at 1.6206 and a break below 1.6178 (low Nov.22) would open the door to 1.6154 (MA50h) and then 1.6100 (psychological level). On the flip side, the initial hurdle aligns at 1.6219 (high Nov.22) followed by 1.6248 (high Oct.25) and then 1.6260 (high Oct.1).