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GBP/USD consolidates below 1.6200

FXStreet (Edinburgh) - The sterling is trading on the back footing on Tuesday, with the GBP/USD now breacking below the 1.6200 mark.

GBP/USD weaker despite positive GDP figures

The ongoing USD strength prompted investors to quickly leave behind the positive readings from the UK GDP during the second quarter, with the domestic economy expanding at an annual rate of 3.2% (vs. 3.0% previous) and 0.9% inter-quarter (vs. 0.8% previous). Next of note for the pound will be the speech by MPC Miles later on today followed by the manufacturing PMI (Wednesday) and the more relevant services PMI (Friday). In the view of Quek Ser Leang, Market Strategist at UOB Group, “GBP rebounded without testing the strong support at 1.6200. The immediate downward pressure has eased with the overnight recovery but the current movement is likely part of consolidation range. Expect sideway trading today, likely between 1.6220 and 1.6280”.

GBP/USD levels to consider

At the moment the pair is losing 0.30% at 1.6190 with the immediate support at 1.6162 (low Sep.16) ahead of 1.6052 (low Sep.10) and finally 1.6003 (50% of 1.4814-1.7192). On the upside, a breakout of 1.6290 (21-d MA) would open the door to 1.6304 (10-d MA) and then 1.6333 (high Sep.26).

EUR/USD depressed below 1.2600

EUR/USD resumed the fall Tuesday on the back of soft Eurozone inflation figures and cleared a couple of major support levels to hit its lowest level in over two years during the European session.
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