17 Jan 2014
GBP/USD approaching 1.6300 again
FXstreet.com (Córdoba) - The GBP/USD is moving to the downside early in Asia, approaching weekly lows that are located barely above 1.6300. On Thursday Cable fell for the second day in a row against the US dollar but managed to hold above 1.6310.
During Thursday's European session GBP/USD hit a 4-week low at 1.6314 and rebounded, but the upside was capped again around 1.6370, that has become a short-term resistance to watch.
Technical outlook for the GBP/USD
The pair is moving in ranges, unable to hold above 1.6360 but with support around 1.6320. The bias since the beginning of the day favors the downside as the GBP/USD makes lower highs in the hourly chart.
Jim Langlands from FX Charts notes that the 4 hour indicators “do suggest an eventual break of the downside, and if we head below the Fibo level (1.6316), and then below 1.6300, look for a choppy run towards 1.6230”. But Langlands warns that there will be bids at 1.6270 “which could well contain any weakness”.
During Thursday's European session GBP/USD hit a 4-week low at 1.6314 and rebounded, but the upside was capped again around 1.6370, that has become a short-term resistance to watch.
Technical outlook for the GBP/USD
The pair is moving in ranges, unable to hold above 1.6360 but with support around 1.6320. The bias since the beginning of the day favors the downside as the GBP/USD makes lower highs in the hourly chart.
Jim Langlands from FX Charts notes that the 4 hour indicators “do suggest an eventual break of the downside, and if we head below the Fibo level (1.6316), and then below 1.6300, look for a choppy run towards 1.6230”. But Langlands warns that there will be bids at 1.6270 “which could well contain any weakness”.