23 Oct 2013
GBP/USD extends decline, tests support area
FXstreet.com (Córdoba) - The GBP/USD was strongly rejected from highs and weighed by the risk off environment it reversed post-NFP gains Wednesday.
The rally of the GBP/USD stalled at 1.6256, just 3 pips ahead of its 10-month high scored early October, which put the Cable under pressure. The pair has dropped more than 130 pips from highs to currently trade at the 1.6125/20 zone, 0.7% below its opening price, having hit a low of 1.6119 so far. Immediate support lies at 1.6115 (Oct 22 low) followed by 1.6100 (psychological level).
Meanwhile, the Bank of England released minutes from its October meeting showing that members unanimously voted to keep policy unchanged, which offered little support to the pound.
GBP/USD technical outlook
"The recent test at 1.6260 resistance area initiated a severe pullback and although the intraday bias is negative for a tighter test of 1.6090-6100 support zone, I favor a reversal to set the beginning of a rise towards 1.6380", says Stoyan Mihaylov, analyst at DeltaStock.com. "Key intraday resistance is projected at 1.6208".
The rally of the GBP/USD stalled at 1.6256, just 3 pips ahead of its 10-month high scored early October, which put the Cable under pressure. The pair has dropped more than 130 pips from highs to currently trade at the 1.6125/20 zone, 0.7% below its opening price, having hit a low of 1.6119 so far. Immediate support lies at 1.6115 (Oct 22 low) followed by 1.6100 (psychological level).
Meanwhile, the Bank of England released minutes from its October meeting showing that members unanimously voted to keep policy unchanged, which offered little support to the pound.
GBP/USD technical outlook
"The recent test at 1.6260 resistance area initiated a severe pullback and although the intraday bias is negative for a tighter test of 1.6090-6100 support zone, I favor a reversal to set the beginning of a rise towards 1.6380", says Stoyan Mihaylov, analyst at DeltaStock.com. "Key intraday resistance is projected at 1.6208".