29 Nov 2013
GBP/USD dips to lows near 1.6330
The sterling is trading on a softer tone at the end of the week, dragging the GBP/USD to session lows in the area of 1.6330.
GBP/USD retreats from highs
After assaulting the boundaries of 1.6380 overnight, the pair’s upside seems to have run out of legs, deflating to the current 1.6330/25 region. Despite the current correction, the bullish momentum around the pound remains intact, lifting the pair to its fourth consecutive weekly close with gains, including a break above the potential double top formation around the mid 1.62 area. Data-wise, Consumer Confidence gauged by Gfk dropped below estimates to -12 in November and Housing Prices sponsored by Nationwide advanced at an annual pace of 6.5%. Strategists at UBS remain bullish on the pair, arguing, “the pair continues to move higher and is trading within striking distance of critical resistance at 1.6381. A move above this would be further positive opening 1.6622. Support is at 1.6277”.
GBP/USD critical levels
The pair is now losing 0.08% at 1.6329 and a breakdown of 1.6277 (low Nov.28) would aim for 1.6198 (low Nov.27) and finally 1.6185 (MA10d). On the upside, the initial hurdle lines up at 1.6380 (2013 high Jan.2) followed by 1.6400 (psychological level) and then 1.6421 (high Aug.30 2011).
GBP/USD retreats from highs
After assaulting the boundaries of 1.6380 overnight, the pair’s upside seems to have run out of legs, deflating to the current 1.6330/25 region. Despite the current correction, the bullish momentum around the pound remains intact, lifting the pair to its fourth consecutive weekly close with gains, including a break above the potential double top formation around the mid 1.62 area. Data-wise, Consumer Confidence gauged by Gfk dropped below estimates to -12 in November and Housing Prices sponsored by Nationwide advanced at an annual pace of 6.5%. Strategists at UBS remain bullish on the pair, arguing, “the pair continues to move higher and is trading within striking distance of critical resistance at 1.6381. A move above this would be further positive opening 1.6622. Support is at 1.6277”.
GBP/USD critical levels
The pair is now losing 0.08% at 1.6329 and a breakdown of 1.6277 (low Nov.28) would aim for 1.6198 (low Nov.27) and finally 1.6185 (MA10d). On the upside, the initial hurdle lines up at 1.6380 (2013 high Jan.2) followed by 1.6400 (psychological level) and then 1.6421 (high Aug.30 2011).