14 Jan 2014
GBP/USD a continuation pattern
FXstreet.com (Guatemala) - GBP/USD is channelling to the downside and shaping up for levels through 1.6430 should the pattern continue.
However, on the 5-minute chart a flag formation might be signifying a continuation of the trend higher. Meanwhile, the shocking state of the US labour market is keeping the dollar at bay overall, but then again, and as Jane Foley, Senior Currency Strategist for Rabobank International explained, the tone of UK economic data recently, while still decent, has disappointed market expectations. “Perhaps the market’s expectations regarding the UK recovery were becoming a little too optimistic? Market positioning suggests that sterling could be vulnerable in the coming weeks if the Bank chooses to underpin a dovish policy position”.
GBP/USD Levels
The 20 DMA is 1.6421, the 50 DMA is 1.6298, the 200 DMA is 1.5738. RSI (14) reads 52.88. Supports are ascending from 1.6262, 1.6316, 1.6337 and. 1.6422/30. Spot is 1.6441 while resistances are 1.6471, 1.6518 and 1.6542.
However, on the 5-minute chart a flag formation might be signifying a continuation of the trend higher. Meanwhile, the shocking state of the US labour market is keeping the dollar at bay overall, but then again, and as Jane Foley, Senior Currency Strategist for Rabobank International explained, the tone of UK economic data recently, while still decent, has disappointed market expectations. “Perhaps the market’s expectations regarding the UK recovery were becoming a little too optimistic? Market positioning suggests that sterling could be vulnerable in the coming weeks if the Bank chooses to underpin a dovish policy position”.
GBP/USD Levels
The 20 DMA is 1.6421, the 50 DMA is 1.6298, the 200 DMA is 1.5738. RSI (14) reads 52.88. Supports are ascending from 1.6262, 1.6316, 1.6337 and. 1.6422/30. Spot is 1.6441 while resistances are 1.6471, 1.6518 and 1.6542.