4 Feb 2014
Flash: GBP/USD’s upward correction begins - FXStreet
FXStreet (Barcelona) - Valeria Bednarik, FXStreet Chief Analyst note that after reaching key 1.6250 area as expected, the GBP/USD managed to bounce strongly up this Tuesday, adding near 100 pips on better than expected UK Construction PMI.
Key Quotes
“The 4 hours chart shows indicators recovering from extreme oversold levels, supporting current upward corrective movement, with immediate resistance around 1.6370. If price manages to break above it, next bullish target comes at 1.6410, where 20 SMA with a strong bearish tone should provide strong resistance.”
“There’s little technical supporting a bearish movement, albeit a price acceleration below 1.6310 should deny the upward correction and see the pair heading back south towards recent lows in the mentioned 1.6250 area.”
Key Quotes
“The 4 hours chart shows indicators recovering from extreme oversold levels, supporting current upward corrective movement, with immediate resistance around 1.6370. If price manages to break above it, next bullish target comes at 1.6410, where 20 SMA with a strong bearish tone should provide strong resistance.”
“There’s little technical supporting a bearish movement, albeit a price acceleration below 1.6310 should deny the upward correction and see the pair heading back south towards recent lows in the mentioned 1.6250 area.”