GBP / USD – Trading Back Below the Significant Level of 1.6150
Over the last month or so, the Cable has displayed interesting price action as it has firmly established some key levels 150 pips from each other. These levels are at 1.63, 1.6150, 1.60 and 1.5850. Over the course of the last few weeks, the Cable has fallen sharply from levels not seen for about 15 months up near 1.64. Recently it met strong support at the round number of 1.60 which has allowed it to rally a little over the last week and move back to another key level at 1.6150.
Over the last week, the Cable has met excess supply around 1.6150 as this has become a strong resistance level forcing the price away and back below 1.61. Over the bigger picture, the Cable has now traded within a wide range of 4.5 cents over the last four months or so, as these levels continue to play a role every time the price approaches one of them. The resistance level at 1.6150 continues to loom large as it provides significant selling pressure and is likely to play a role again should the Cable return there shortly. (Daily chart / 4 hourly chart below)
4 hourly chart
|Jan 14 at 23:30 GMT|
|1.6076 / 77||H: 1.6146||L: 1.6031|
GBP/USD Long – Short Ratio
(Shows the ratio of long vs. short positions held for the GBP/USD among all OANDA clients. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)
- During the early hours of the Asian trading session on Tuesday, the GBP/USD is consolidating in a narrow range between 1.6070 and 1.6090.
- Having recently found strong support at 1.60, it is likely to continue to offer support over the short term.
- Current range: Trading just above 1.6100 around 1.6080.
Further levels in both directions:
- Below: 1.6000 and 1.5850.
- Above: 1.6150 and 1.6300.
- UK 9:30 (GMT) CPI (Dec)
- EU 10:00 (GMT) Trade Balance (Nov)
- US 13:30 (GMT) PPI (Dec)
- US 13:30 (GMT) Retail Sales (Dec)
- US 15:00 (GMT) Business inventories (Nov)
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