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4 Oct 2013
GBP/USD violates support succumbing to 1.6007 weekly lows
FXstreet.com (Chicago) - GBP/USD tops worst performers for today with 0.87% daily losses so far. Lagging all week, the pair cracked down to 1.6007 weekly lows at Wall Street closing.
Weakened pound
Despite printing gains, the indexes accumulate weekly losses. Today, the Dow advanced 0.51% similarly to the Nasdaq up 0.89% and the S&P500 up 0.71%. Amid a political US crisis that continues, “ultimatum-mode” declarations by members of both parties raise concerns about whether the situation will go on for longer. Placing bets against the pound and favoring the greenback strengthening, speculators and market participants press the pair down close to losing the 1.60 support. In the UK, the FTSE 100 closed up 0.08%.
GBP/USD Technical Levels
Bouncing from lows, the pair now trades below the immediate support at 1.6014 (September 20th lows) to face 1.5953 (September 24th lows) ahead of 1.5876 (September 17th lows). On the upside, resistances are set at 1.6095 (September 26th highs), 1.6158 (September 18th highs) followed by 1.6259 (September 29th highs). Reported as slightly bearish on one-hour timeframe analysis below the EMA20, the violation of the 1.60 zone would trigger an extended downfall with violation of July 4th’s upward trendline.
Weakened pound
Despite printing gains, the indexes accumulate weekly losses. Today, the Dow advanced 0.51% similarly to the Nasdaq up 0.89% and the S&P500 up 0.71%. Amid a political US crisis that continues, “ultimatum-mode” declarations by members of both parties raise concerns about whether the situation will go on for longer. Placing bets against the pound and favoring the greenback strengthening, speculators and market participants press the pair down close to losing the 1.60 support. In the UK, the FTSE 100 closed up 0.08%.
GBP/USD Technical Levels
Bouncing from lows, the pair now trades below the immediate support at 1.6014 (September 20th lows) to face 1.5953 (September 24th lows) ahead of 1.5876 (September 17th lows). On the upside, resistances are set at 1.6095 (September 26th highs), 1.6158 (September 18th highs) followed by 1.6259 (September 29th highs). Reported as slightly bearish on one-hour timeframe analysis below the EMA20, the violation of the 1.60 zone would trigger an extended downfall with violation of July 4th’s upward trendline.