Friday, October 10, 2014

$GBP/USD looks to stabilize around 1.6050

The sell-off in the sterling seems to have found support in the mid-1.60s so far, with $GBP/USD coming down from overnight tops around 1.6130.

$GBP/USD depressed, $USD bid

The renaissance of the US dollar is once again hurting the risk-associated universe, and the pound is no exception. Same as its European peer, $GBP has almost fully retraced the FOMC-induced spike to levels beyond 1.6200 the figure and looks ready to challenge the critical 1.6050 area. In the data space, traders bypassed the better-than-expected figures from the UK external sector, failing to ignite any reaction in spot.

$GBP/USD levels to watch

The pair is now losing 0.38% at 1.6057 with the next support waiting at 1.6032 (low Oct.8) followed by 1.6027 (low Oct.7) and then 1.5943 (low Oct.6). On the upside, a break above 1.6226 (high Oct.9) would target 1.6234 (Kijun Sen) en route to 1.6252 (high Oct.1).