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GBP/USD recovering in over bearishly steep channel

FXStreet (Guatemala) - GBP/USD is trading at 1.5718, up 0.08% on the day, having posted a daily high at 1.5738 and low at 1.5649.

GBP/USD attempt at the upside through the 1.57 handle has been capped at 1.5738 when it dropped back to 1.57 and drifted higher up to 1.5720 again. The next target for the bulls, should there be continued bouts of demand, would be the 7th November low at 1.5792 that could signal that last weeks low just south of the 1.56 handle comes as support in a recovery on the bid for the short term. Closes above 1.5740 could attract demand for Sterling and clarify the uptrend as being in place within the overall bearish channel.

Karen Jones, chief analyst at Commerzbank, explained that potentially stronger rallies are expected to find good resistance offered by the 1.5855 November 2013 low and then by the 1.5913 four month downtrend line. “Key resistance remains at 1.6184, the October 21 high”. However she added that while capped here, an overall negative bias remains intact.

“The 1.5595/92 recent lows are regarded as the break down point to 1.5320, the 78.6% retracement of the move from 2013” – Karen Jones.

GBP/USD noteworthy levels

Current price is 1.5718, with resistance ahead at 1.5737 (Weekly Classic R1), 1.5738 (Daily High), 1.5739 (Daily Classic R1), 1.5772 (Daily Classic R2) and 1.5812 (Daily 20 SMA). Next support to the downside can be found at 1.5717 (Yesterday's High), 1.5705 (Daily Open), 1.5693 (Hourly 20 EMA) and 1.5683 (Daily Classic PP) ahead of 1.5595.

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