24 Oct 2013
GBP/USD posts modest bearish reversal candle Wednesday; first support at 1.6085
FXstreet.com (Barcelona) - GBP/USD hits its head on the short-term ceiling at 1.6259. Higher prices are still likely in the near future, but not before a normal, healthy pullback / consolidation.
GBP/USD pulls back relatively gently on resurgence of “risk off” trade
Until Wednesday’s reversal, GBP/USD looked like it wanted to continue higher. However, with Wednesday’s Chinese credit scare, global traders shifted their collective attitude from “risk on” to “risk off” in a hurry. Money flowed into the greenback and as a result weighed down the GBP/USD.
Thursday, traders will be reacting to the Bank of England Governor Carney’s speech, US Weekly Jobless Claims, US Manufacturing PMI and US New Home Sales.
Technical outlook for GBP/USD
Technicians say that GBP/USD must take out short-term resistance at 1.6259 to open things up to the upside. Elliott Wave technicians say GBP/USD is likely in a counter-trend pullback as part of wave 5 higher with a projected target of 1.6432. Support comes in at the Fibonacci retracements of 1.6085 and 1.6044.
GBP/USD pulls back relatively gently on resurgence of “risk off” trade
Until Wednesday’s reversal, GBP/USD looked like it wanted to continue higher. However, with Wednesday’s Chinese credit scare, global traders shifted their collective attitude from “risk on” to “risk off” in a hurry. Money flowed into the greenback and as a result weighed down the GBP/USD.
Thursday, traders will be reacting to the Bank of England Governor Carney’s speech, US Weekly Jobless Claims, US Manufacturing PMI and US New Home Sales.
Technical outlook for GBP/USD
Technicians say that GBP/USD must take out short-term resistance at 1.6259 to open things up to the upside. Elliott Wave technicians say GBP/USD is likely in a counter-trend pullback as part of wave 5 higher with a projected target of 1.6432. Support comes in at the Fibonacci retracements of 1.6085 and 1.6044.