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Forex pairs in this Article » GBP/USD (Barcelona) - GBP/USD bulls are benefiting from US dysfunction early this week as the cross opened higher on unproductive discussions between US politicians this week.

GBP/USD traders have to stay focused on D.C. as no data is expected until Tuesday

GBP/USD traders will continue to focus on the news flow out of Washington. The discussions held Saturday between Democrat and Republican leadersip actually may have produced “one or two steps backward” as opposed to ant progress in the quest to resolve their budgetary differences. The politicians reporting these depressing developments tempered their negativity with some clear optimism that things could be worked out before the debt ceiling deadline of 10/17.

Technical outlook for GBP/USD

Technicians say that GBP/USD bounced successfully off of key “correction support” at 1.5907. The next two possible supports below that are 1.5884 and 1.5841. Short-term resistance for the cross comes in at horizontal line at 1.6000 and then the 10/8 high at 1.6123. Elliott Wave technicians say GBP/USD is likely in the early stages of wave 5 higher with a projected target of 1.6432.
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