Forex: GBP/USD conserves 1.6100 handle
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GBP/USD
FXstreet.com (Barcelona) - The London market rally was capped at 1.6137 high and retracement followed, with the 1.6110 surrounding area serving as support for a while. However, the NY session coupled with a disappointing Chicago PMI in October and no deal at the Eurogroup meeting triggered risk aversion down to the 1.6100 psychological level.
The Chicago PMI data came in surprisingly contracting: up from 49.7 to 49.9 in October, but failing to reach the 51.0 expected. The pair was able to find a low at 1.6094 and get back above the handle, but renewed pressure risks further decline.
"We look for rallies to be capped by the 1.6145/85 recent highs, initial resistance is the 1.6120 downtrend", wrote Commerzbank analyst Karen Jones, favoring a slide back to 1.5977 (10th Oct low) while capped by resistance.
The Chicago PMI data came in surprisingly contracting: up from 49.7 to 49.9 in October, but failing to reach the 51.0 expected. The pair was able to find a low at 1.6094 and get back above the handle, but renewed pressure risks further decline.
"We look for rallies to be capped by the 1.6145/85 recent highs, initial resistance is the 1.6120 downtrend", wrote Commerzbank analyst Karen Jones, favoring a slide back to 1.5977 (10th Oct low) while capped by resistance.
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