30 Jul 2013
GBP/USD at risk of cascading lower unless 1.5419 is conquered
FXstreet.com (Barcelona) - The British Pound / US Dollar cross (GBPUSD) was on a nice roll as recently as last Thursday. Now, however, the failure to take out 1.5419 has some technicians warning of a big move lower potentially commencing.
GBP/USD bulls will look to US data and equities trading for help
With no British data due out Tuesday, GBP/USD traders will be monitoring home prices and consumer confidence data out of the US for guidance on the short-term direction of the cross. The major market-moving news will start to flow on Wednesday when the US Federal Reserve will release their interest rate decision. US GDP, the Bank of England’s rate decision and the US monthly jobs report will all be due out later this week.
GBP/USD technical outlook
Some technicians are starting to point to the GBP/USD’s peak at 1.5419 as the end of a corrective move higher. Others still had a bit more upside left (to 1.5508) before the corrective rally was to end. Regardless of where the top is / was made, the technical crowd is calling for a substantial move lower – at least down to 1.4800. Shorter-term resistance for GBP/USD comes in at the 1.5419 and is followed by the 1.5508 (higher) key resistance level. Support for GBP/USD comes in at last Wednesday’s close at 1.5313 and is followed by Thursday’s low at 1.5262.
GBP/USD bulls will look to US data and equities trading for help
With no British data due out Tuesday, GBP/USD traders will be monitoring home prices and consumer confidence data out of the US for guidance on the short-term direction of the cross. The major market-moving news will start to flow on Wednesday when the US Federal Reserve will release their interest rate decision. US GDP, the Bank of England’s rate decision and the US monthly jobs report will all be due out later this week.
GBP/USD technical outlook
Some technicians are starting to point to the GBP/USD’s peak at 1.5419 as the end of a corrective move higher. Others still had a bit more upside left (to 1.5508) before the corrective rally was to end. Regardless of where the top is / was made, the technical crowd is calling for a substantial move lower – at least down to 1.4800. Shorter-term resistance for GBP/USD comes in at the 1.5419 and is followed by the 1.5508 (higher) key resistance level. Support for GBP/USD comes in at last Wednesday’s close at 1.5313 and is followed by Thursday’s low at 1.5262.