GBP / USD – Pushes Through to 1.61 and Highest Level in 1 Month

Throughout October and through to the middle of November, the Cable experienced a slow and steady decline from the long term resistance level at 1.63.  This resulted in the Cable trading down to a two month low just below 1.5850 a few 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 few weeks, the cable has rallied very strongly but not for the first time in the recent medium term down trend. It was able to push back towards the key level at 1.60 and a couple of weeks ago, it was able to push through that level where it presently finds itself moving up towards 1.61 and trading at its highest levels in a month.  The resistance level at 1.6150 looms large as it provided significant selling pressure back throughout October and is likely to play a role again should the Cable continue to move higher.    (Daily chart / 4 hourly chart below)

daily chart

4 hourly chart

GBP/USD

Dec 4 at 02:10 GMT

1.6088 / 90

H: 1.6115

L: 1.6027

 

S3	S2	S1	R1	R2	R3
1.6000	1.5900	1.5850	1.6150	1.6300	—

 

GBP/USD Technical

• During the early hours of the Asian trading session on Tuesday, the GBP/USD continues to consolidate just below 1.61.
• Having broken down through the key 1.60 level early last month, the GBP/USD then returned to this level and ran into a wall of supply.
• The overall trend over the last few months is down so how long will the current rally last for?
• Current range: Trading just below 1.6100.

 

Further levels in both directions:

• Below: 1.6000, 1.5900 and 1.5850.
• Above: 1.6150 and 1.6300.

 

December 4

• AU 0:30 (GMT) Current Account (Q3)
• AU 0:30 (GMT) Net Exports of GDP (Q3)
• AU 0:30 (GMT) Building approvals (Oct)
• AU 3:30 (GMT) RBA – Overnight Rate (Dec)
• EU 10:00 (GMT) PPI (Oct)
• CA 14:00 (GMT) BoC – Overnight Rate (Dec)

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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.