23 Oct 2013
GBP/USD Batman’s signal bullish or bearish?
FXstreet.com (London) - GBP/USD, besides looking like Batman on the 30 minute charts, is a interesting play into the US session today.
GBP/USD sky dived from heights shy September highs in the post payrolls malaise but has been hit hard on the supply this morning in Europe on the London open with the China news. The pair recorded a low of 1.6120 and well over a big figure in losses on the day. We had the Minutes from the BoE this morning as well which, as widely expected, were unlikely to be a market mover. Research teams at TD Securities said, “…minutes revealed a fairly upbeat tone from the MPC, although comments seem more anecdotal and are not likely to see a substantial improvement in UK forecasts. Regardless though, GBPUSD was more concerned with the broader moves in the FX space overnight, which resulted in a sharp retracement lower for the pair”. A wide trading range might be the play today in NA between 1.6120 – 1.6250 with perhaps a bias for the topside given the markets current sentiment on the USD. There appears to be some bullish momentum building up on the neck line of the 'Batman' head and shoulders that seems to be forming with a bounce towards 1.6181 resistance.
GBP/USD Levels
The 20 DMA is 1.6086, the 50 DMA is 1.5863 and the 200 DMA is 1.5477. RSI (14) reads 42.29. Supports are ascending from, 1.6115, 1.6130 and 1.6162. Spot is currently 1.6165 while resistances are 1.6181, 1.6220, 1.6260, 1.6310, 1.6380 and 1.6421.
GBP/USD sky dived from heights shy September highs in the post payrolls malaise but has been hit hard on the supply this morning in Europe on the London open with the China news. The pair recorded a low of 1.6120 and well over a big figure in losses on the day. We had the Minutes from the BoE this morning as well which, as widely expected, were unlikely to be a market mover. Research teams at TD Securities said, “…minutes revealed a fairly upbeat tone from the MPC, although comments seem more anecdotal and are not likely to see a substantial improvement in UK forecasts. Regardless though, GBPUSD was more concerned with the broader moves in the FX space overnight, which resulted in a sharp retracement lower for the pair”. A wide trading range might be the play today in NA between 1.6120 – 1.6250 with perhaps a bias for the topside given the markets current sentiment on the USD. There appears to be some bullish momentum building up on the neck line of the 'Batman' head and shoulders that seems to be forming with a bounce towards 1.6181 resistance.
GBP/USD Levels
The 20 DMA is 1.6086, the 50 DMA is 1.5863 and the 200 DMA is 1.5477. RSI (14) reads 42.29. Supports are ascending from, 1.6115, 1.6130 and 1.6162. Spot is currently 1.6165 while resistances are 1.6181, 1.6220, 1.6260, 1.6310, 1.6380 and 1.6421.