25 Jul 2013
GBP/USD extends the correction to 1.5330
FXstreet.com (Edinburgh) -The sterling is retracing the sharp pullback post-GDP figures, dragging the GBP/USD to fresh lows in the boundaries of 1.5260 on Thursday.
GBP/USD focus on 1.5400
The pair is still unable to follow through the current cap around 1.5400 the figure, opening the door for further declines in light of the next BoE meeting and the likeness of the central bank to adopt some sort of forward guidance. Eric Theoret, Currency Strategist at Scotiabank, argued that the outlook on the pair is bearish to neutral in the sort-term. He adds, “intraday highs have fallen over the past three sessions, bullish momentum indicators are moderating. Look to breach of 9 day MA (1.5256) to confirm near term weakness. Key Fibo 61.8% is resistance”.
GBP/USD levels to consider
The pair is now advancing 0.10% at 1.5330 and a breakout of 1.5386 (high Jul.25) would open the door to 1.5390 (high Jul.24) and finally 1.5393 (high Jul.23). On the downside, support levels align at 1.5264 (low Jul.25) followed by 1.5258 (low Jul.22) and then 1.5248 (MA10d).
GBP/USD focus on 1.5400
The pair is still unable to follow through the current cap around 1.5400 the figure, opening the door for further declines in light of the next BoE meeting and the likeness of the central bank to adopt some sort of forward guidance. Eric Theoret, Currency Strategist at Scotiabank, argued that the outlook on the pair is bearish to neutral in the sort-term. He adds, “intraday highs have fallen over the past three sessions, bullish momentum indicators are moderating. Look to breach of 9 day MA (1.5256) to confirm near term weakness. Key Fibo 61.8% is resistance”.
GBP/USD levels to consider
The pair is now advancing 0.10% at 1.5330 and a breakout of 1.5386 (high Jul.25) would open the door to 1.5390 (high Jul.24) and finally 1.5393 (high Jul.23). On the downside, support levels align at 1.5264 (low Jul.25) followed by 1.5258 (low Jul.22) and then 1.5248 (MA10d).