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Forex pairs in this Article » GBP/USD (London) - GBP/USD has dropped to mark a low of 1.6321 in an avalanche while the USD has been bid across the board and also supported by steady retail sales data.

Strategists at TD Securities noted that the week between the upside surprise to non-farm payrolls and the next FOMC meeting had markets thinking hard about tapering, especially with the US government appearing to have struck a two-year budget deal. “Global equities had a soft week, although the USD was a little softer than we would have expected to see with tapering calls generally being brought forward…Next week the UK has a handful of important data releases, including the unemployment rate, which we expect to move another notch lower”. Commerzbank strategists said, “GBP/USD the up move continues to look tired, we have a bearish engulfing pattern, and complex divergence of the daily RSI and we suspect that we will see a dip back to key support at 1.6259/55”.

GBP/USD Levels

The 20 DMA is 1.6268, the 50 DMA is 1.6142 and the 200 DMA is 1.5590. RSI (14) reads 31.02. Supports are 1.6255, 1.6294 and 1.6316. Spot is1.6330 with resistances at 1.6361, 1.6420, 1.6446, 1.6468 and 1.6475.
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