The last couple of months or so has seen a slow and steady decline from the long term resistance level at 1.63. This has resulted in the Cable trading down to a two month low just below 1.5850 a couple of weeks ago. During this decline, the sterling found solid support at a number of levels including 1.61, 1.60 and more recently at 1.5850.
During the last couple of weeks, the cable has rallied very strongly but not for the first time in this recent medium term down trend. It has been able to push back towards the key level at 1.60 and near the end of last week, it was able to push through that level where it presently finds itself. The overall trend over the last few months is down so how long will the current rally last for? (Daily chart / 4 hourly chart below)
daily chart
4 hourly chart
GBP/USD |
Nov 26 at 23:30 GMT |
| 1.6026 / 27 | H: 1.6035 | L: 1.5996 |
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.6000 | 1.5900 | 1.5800 | 1.6150 | 1.6300 | — |
GBP/USD Technical
- During the early hours of the Asian trading session on Tuesday, the GBP/USD continues to consolidate in a narrow range between 1.6010 and 1.6030.
- Having broken through the key 1.60 level earlier this month, the GBP/USD has returned to this level and run into a wall of supply as it consolidates now just above 1.60.
- The overall trend over the last few months is down so how long will the current rally last for?
- Current range: Trading just above 1.6000.
Further levels in both directions:
- Below: 1.6000, 1.5900 and 1.5800.
- Above: 1.6150 and 1.6300.
November 27
- UK 9:30 (GMT) GDP (2nd Est.) (Q3)
- UK 9:30 (GMT) Index of Services (Sep)
- US 13:30 (GMT) Durable goods orders (Oct)
- US 15:00 (GMT) Consumer Confidence (Nov)
- US 15:00 (GMT) FHFA House Price Index (Sep)
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