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Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is following the rest of the risk-associated assets on Wednesday, with the GBP/USD consolidating its recent correction below the 1.6200 handle.

GBP/USD eases from highs

The pair is prolonging its pullback from recent multi-month highs around 1.6260 on Wednesday, taking the pair to the current area of 1.6180/85 ahead of the Construction PMI in the UK, expected to improve a tad to 59.2 for the month of September from August’s 52.1. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair’s “high of 1.6259 was accompanied by a large divergence of the daily RSI and is losing momentum ahead of the 2009-2013 downtrend at 1.6327, where we would look for signs of failure. The focus shifts to the 1.6117 accelerated uptrend”.

GBP/USD relevant levels

At the moment the pair is losing 0.06% at 1.6187 with the immediate support at 1.6127 (MA100h) ahead of 1.6100 (low Sep.30) and then 1.6088 (MA10d). On the flip side, the initial hurdle lies at 1.6380 (2013 high Jan.2).
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