GBP / USD – The 1.60 Support Level Continues to Hold for Now
The last month or so has seen a slow and steady decline from the long term resistance level at 1.63. 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 since been tested a number of times and has held up reasonably well. Earlier last week, the sterling broke through the 1.60 level but found solid demand kick in near 1.59 which quickly returned it strongly back above 1.61. The few days since has seen the sterling slowly but surely drift back towards 1.60 and this level has emerged again as a key support level. (Daily chart / 4 hourly chart below)
4 hourly chart
|Oct 29 at 22:30 GMT|
|1.6033/35||H: 1.6087||L: 1.6006|
- During the early hours of the Asian trading session on Tuesday, the GBP/USD is consolidating in a narrow range between 1.6020 and 1.6040.
- 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.
- JP 6:00 (GMT) BoJ publishes outlook report
- EU 9:00 (GMT) Business Climate Index (Oct)
- EU 9:00 (GMT) Consumer Sentiment (Oct)
- EU 9:00 (GMT) Economic Sentiment (Oct)
- EU 9:00 (GMT) Industrial Sentiment (Oct)
- US 13:00 (GMT) S&P Case-Shiller Home Price (Aug)
- US 14:00 (GMT) Consumer Confidence (Oct)
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.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.