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Forex pairs in this Article » GBP/USD (Edinburgh) -The steep correction lower of the GBP/USD seems to have stalled around 1.5965/60 on Wednesday, now allowing a small bounce to 1.5980/85.

GBP/USD remains offered

The pair continues to trade on the back footing, extending the correction lower from recent multi-month peaks around 1.6260. The disappointing data from UK industrial and manufacturing sectors plus a wider than expected trade deficit weighed on the sterling, intensifying the pullback. According to Emmanuel Ng, Strategist at OCBC Bank, the pair “may continue to bounce around in a 1.5950-1.6260 band in the near term pending further cues (note BOE MPC tomorrow) with the pair still reaping underlying support from UK data releases”.

GBP/USD levels to watch

As of writing the pair is losing 0.63% at 1.5982 with the immediate support at 1.5954 (low Sep.24) followed by 1.5017 (Fibo retracement). On the upside, the initial hurdle aligns at 1.6122 (MA10d) would open the door to 1.6124 (high Oct.8) and then 1.6179 (high Oct.4).
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