Forex Flash: GBP/USD downside buffered, market to stay heavy – RBS

FXstreet.com (Barcelona) - According to Technical Markets Strategist William Moore at RBS, "We still like this market to stay heavy with the GBPUSD in the short medium-terms. Moreover, we note with interest that the market has now traded below the middle band around the 1.6146 level, that could be a nice level to put stops above for a short term trade."

The key downside levels lie at 1.6070, which is the 61.8% retracement of the August/September rally: "we look for a move down towards the 1.5950 level, which is the lower Bollinger band and the 38.2% retracement of the same range." Moore adds.

"Finally, we advice placing a stop through 1.6320, giving 1.6302 a chance to resist GBP advances. We calculate resistances to be at 1.6261 and 1.6302/09, with supports at 1.6071 and 1.5951." he suggests.