25 Oct 2013
GBP/USD dips to lows around 1.6150
FXstreet.com (Edinburgh) -The sterling is now rapidly losing the grip against the greenback, with the GBP/USD falling to session lows in the area of the mid 1.61s.
GBP/USD a victim of profit taking
The pair has been quite erratic throughout the week, meandering around 1.6100 and Tuesday’s peaks near 1.6260. Today’s release of the UK GDP figures for the third quarter came in as expected and was practically ignored by the price action, as much of it was already priced in by markets. In the opinion of Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment “A strong recovery in UK GDP is under way with survey evidence pointing to an even stronger fourth quarter. It's housing-led but any growth is better than no growth as regards getting the budget deficit down and there's a good chance the recovery broadens as companies start to invest in new equipment”.
GBP/USD levels to watch
The pair is now losing 0.20% at 1.6166 and a violation of 1.6119 (low Oct.23) would expose 1.6115 (low Oct.22) and finally 1.6096 (MA10d). On the upside, the initial barrier lies at 1.6258 (high Oct.23) followed by 1.6260 (high Oct.1) and then 1.6300 (psychological level).
GBP/USD a victim of profit taking
The pair has been quite erratic throughout the week, meandering around 1.6100 and Tuesday’s peaks near 1.6260. Today’s release of the UK GDP figures for the third quarter came in as expected and was practically ignored by the price action, as much of it was already priced in by markets. In the opinion of Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment “A strong recovery in UK GDP is under way with survey evidence pointing to an even stronger fourth quarter. It's housing-led but any growth is better than no growth as regards getting the budget deficit down and there's a good chance the recovery broadens as companies start to invest in new equipment”.
GBP/USD levels to watch
The pair is now losing 0.20% at 1.6166 and a violation of 1.6119 (low Oct.23) would expose 1.6115 (low Oct.22) and finally 1.6096 (MA10d). On the upside, the initial barrier lies at 1.6258 (high Oct.23) followed by 1.6260 (high Oct.1) and then 1.6300 (psychological level).