Forex: GBP/USD plunges towards 1.5826 support
Forex pairs in this Article »
GBP/USD
FXstreet.com (Barcelona) - After operating in positive territory during the overnight session, the GBPUSD plunged over 30 pips during recent minutes to pair its gains and settle in the region of 1.5823/26 Tuesday.
"The negative near-term tone continues to drive the pair lower, as the GBPUSD approached the next target and psychological support at 1.5800, after fully retracing November/January 1.5826/1.6380 rally. A clear break here is ultimately needed to signal a fresh bearish phase, as the pair moves below the range, established in September 2012." Notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
After surrendering all its gains Tuesday and returning to negative territory, down -0.05%, Drvenica calculates that a breach of the 1.5826 support level will trigger further means of supportive correction at 1.5805 onto 1.5723. Conversely, the pair is slated to face resistance at the 1.5864 region, followed upwards towards the 1.5900 handle, and 1.5922.
The United Kingdom's public finances figures out today are the first of a series of numbers (Q4 GDP etc.) and events this week (MPC minutes, Cameron's re-scheduled Europe speech), which could affirm the market's negative sterling view. According to Research Analysts Gareth Berry and Geoffrey Yu at UBS, "We support this stance as growth, politics, monetary policy and fiscal challenges continue to bite, however we ultimately caution the market may have jumped on this view a bit too aggressively"
"The negative near-term tone continues to drive the pair lower, as the GBPUSD approached the next target and psychological support at 1.5800, after fully retracing November/January 1.5826/1.6380 rally. A clear break here is ultimately needed to signal a fresh bearish phase, as the pair moves below the range, established in September 2012." Notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
After surrendering all its gains Tuesday and returning to negative territory, down -0.05%, Drvenica calculates that a breach of the 1.5826 support level will trigger further means of supportive correction at 1.5805 onto 1.5723. Conversely, the pair is slated to face resistance at the 1.5864 region, followed upwards towards the 1.5900 handle, and 1.5922.
The United Kingdom's public finances figures out today are the first of a series of numbers (Q4 GDP etc.) and events this week (MPC minutes, Cameron's re-scheduled Europe speech), which could affirm the market's negative sterling view. According to Research Analysts Gareth Berry and Geoffrey Yu at UBS, "We support this stance as growth, politics, monetary policy and fiscal challenges continue to bite, however we ultimately caution the market may have jumped on this view a bit too aggressively"
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