GBP/USD bulls woke up, but 1.66 handle is out of reach yet

By FXstreet.com | Updated August 22, 2014 AAA

FXStreet (Moscow) - GBP/USD is locked in a narrow range, limited by 1.6569 on the downside and 1.6587 on the upside with some bullish momentum early in Europe

Bears need to take a breath

GBP/USD bears need some rest after their amazing race to new multi-month low at 1.6563 reached on Thursday. The pair finished another day in red, but the bearish momentum is waning. Cable is deeply oversold, thus some profit-taking into the end of the week is quite possible. UK macroeconomic calendar is empty today, thus the key market focus shifts to Jackson Hole event where ECB’s Draghi and FED’s Yellen are going to share their views on economic developments. A boost of volatility is expected during NY hours and GBP/USD might be affected. From the technical point of view, weekly low of 1.6563 is important for the bears, once it is broken, the pair might slip to new multi-month low at 1.6550. On the upside the resistance is seen at 1.6600.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6582, with support below at 1.6566, 1.6544 and 1.6524 with resistance above at 1.6600, 1.6620, and 1.6638. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.6686, and the daily 20EMA bearish at 1.6777. Hourly RSI is bearish at 44.

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