GBP / USD – The 1.60 Level Continues to Hold, But Pressure Mounts

The last month or so has seen a slow and steady decline from the long term resistance level at 1.63.  In early September, the pound was able break through the resistance level at 1.59 and push towards the round number at 1.60.  It paused and consolidated around 1.60 for a couple of days before pushing on higher however it ran into a brick wall at 1.63. Back at the end of April the sterling stopped and reversed strongly around 1.63 – this was always very likely to play a role in the sterling's recent rise and it didn't disappoint.

Over the last month or so, the 1.63 level has presented stiff resistance and demand has declined and the selling increased. Earlier this month, the sterling found support at 1.61 however more importantly in the last few weeks, it has found solid support right at 1.60.  This level has emerged again over the last few days providing solid support and providing some relief.   (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

GBP/USD

Oct 22 at 23:50 GMT

1.6013/15

H: 1.6052

L: 1.5998

S3	S2	S1	R1	R2	R3
1.6000	1.5900	—	1.6100	1.6300	—

 

GBP/USD Technical

• During the early hours of the Asian trading session on Tuesday, the GBP/USD has pushed up a little from the key support level at 1.60.
• Having broken through the 1.59 level early last month, it is now likely to offer support over the medium term, although in the last few weeks, the 1.60 level has emerged as a key support level.
• Current range: Trading just above 1.6000.

 

Further levels in both directions:

• Below: 1.6000 and 1.5900.
• Above: 1.6100 and 1.6300.

 

October 23

• FR 6:45 (GMT) INSEE Business Confidence (Oct)
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• EU 14:00 (GMT) Flash Consumer Sentiment (Oct)

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.