14 Oct 2013
GBP/USD capped around 1.5990
FXstreet.com (Edinburgh) -The sterling is following the rest of the risk-associated assets on Monday, taking the GBP/USD to the area of 1.5975/80 after hitting highs in the boundaries of 1.5990.
GBP/USD fading the up-move
Higher inflation figures in China prompted the markets to start the week tilted to the risk-on trade, although market participants continue to closely follow the events in the US fiscal front, where the debt-ceiling deadline is due around October 17th. The BBH Global Currency Strategy Team argued, “We suggested it has traced out a head and shoulders reversal pattern and the correction to the 14-cent summer rally has begun. The initial measuring objective of the head and shoulders pattern is near $1.5650. The retracement objectives are found just above 1.57, then $1.5540 and then $1.5465. The pre-weekend high near $1.60 should cap nearby upticks”.
GBP/USD key levels
As of writing the pair is up 0.14% at 1.5979 and a surpass of 1.6002 (high Oct.11) would aim for 1.6052 (MA21d) and then 1.6061 (MA10d). On the downside, the initial support aligns at 1.5923 (low Oct.11) ahead of 1.5914 (low Oct.10) and finally 1.5893 (low Sep.18).
GBP/USD fading the up-move
Higher inflation figures in China prompted the markets to start the week tilted to the risk-on trade, although market participants continue to closely follow the events in the US fiscal front, where the debt-ceiling deadline is due around October 17th. The BBH Global Currency Strategy Team argued, “We suggested it has traced out a head and shoulders reversal pattern and the correction to the 14-cent summer rally has begun. The initial measuring objective of the head and shoulders pattern is near $1.5650. The retracement objectives are found just above 1.57, then $1.5540 and then $1.5465. The pre-weekend high near $1.60 should cap nearby upticks”.
GBP/USD key levels
As of writing the pair is up 0.14% at 1.5979 and a surpass of 1.6002 (high Oct.11) would aim for 1.6052 (MA21d) and then 1.6061 (MA10d). On the downside, the initial support aligns at 1.5923 (low Oct.11) ahead of 1.5914 (low Oct.10) and finally 1.5893 (low Sep.18).