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Forex pairs in this Article » GBP/USD
FXstreet.com (New York) - The GBP/USD foreign exchange rate has rebounded off an earlier low at 1.4813 during US trading, after an initial plunge sent the pair into free fall Tuesday.

Indeed, the GBP/USD is still deeply entrenched in negative territory at 1.4863 (-0.60% off its opening), having regained the critical 1.4832 and 1.4855 (55-day MA) supports. Presently, the pair has been fortified by a crossover at the 1.4847 level (convergence of 20 and 50-day SMA).

GBP/USD technical bias

According to Karen Jones, an analyst at Commerzbank, “The GBP/USD has sold off substantially and near-term fell through support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low, and as suspected we have seen some profit taking here.”

In addition, “The GBP/USD dropped sharply from levels close to the resistance 1.4995 and touched support level around 1.4825. Prolonged stability below 1.4940 is ultimately negative and trading below it keeps the possibility of extending bearishness, taking into consideration that breaking 1.4825 is significant to push the pair further to the downside.” warns the Technical Analyst Team at ICN.com.
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