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3 Apr 2014
GBP/USD consolidates below 1.6600
FXStreet (Edinburgh) - The selling pressure around the sterling remains intact on Thursday, with the GBP/USD now attempting to consolidate around 1.6580.
GBP/USD weaker after data, risk off
The pair was once again rejected in the area of 1.6660 (Wednesday-Thursday peaks) and a softer services PMI print in the UK economy added to the selling interest later, pushing spot to breach the 1.6600 support. There are no more releases in the UK, with the US Payrolls tomorrow taking centre stage. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The Elliott wave count on the 240 minute chart is implying a potential target of 1.69 (we are not so convinced)… Interim pullbacks should find some support at 1.6574 (55 day ma) but key near term support is 1.6470”.
GBP/USD levels to watch
As of writing the pair is losing 0.25% at 1.6584 facing the next support at 1.6571 (low Apr.3) followed by 1.6519 (daily cloud base) and then 1.6500 (psychological level). On the flip side, a break above 1.6620 (daily cloud top) would aim for 1.6665 (high Apr.2) and finally 1.6684 (high Mar.31).
GBP/USD weaker after data, risk off
The pair was once again rejected in the area of 1.6660 (Wednesday-Thursday peaks) and a softer services PMI print in the UK economy added to the selling interest later, pushing spot to breach the 1.6600 support. There are no more releases in the UK, with the US Payrolls tomorrow taking centre stage. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The Elliott wave count on the 240 minute chart is implying a potential target of 1.69 (we are not so convinced)… Interim pullbacks should find some support at 1.6574 (55 day ma) but key near term support is 1.6470”.
GBP/USD levels to watch
As of writing the pair is losing 0.25% at 1.6584 facing the next support at 1.6571 (low Apr.3) followed by 1.6519 (daily cloud base) and then 1.6500 (psychological level). On the flip side, a break above 1.6620 (daily cloud top) would aim for 1.6665 (high Apr.2) and finally 1.6684 (high Mar.31).