GBP / USD – Moving Between Two Key Levels at 1.60 and 1.6150

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 about a month ago.   During this decline, the sterling found solid support at a number of levels including 1.60 and more recently at 1.5850.

During its strong rally over the last month or so, the Cable has been able to push back towards the key level at 1.60 and move beyond.  It ran into the medium term resistance level at 1.6150 a week ago and has since returned back to another significant level at 1.60 where it has found some support.   The resistance level at 1.6150 looms large as it provided significant selling pressure previously 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 10 at 22:55 GMT

1.6074 / 76

H: 1.6096

L: 1.6014

 

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

GBP/USD Long – Short Ratio

(Shows the ratio of long vs. short positions for the GBP/USD. The left percentage (blue) shows long positions; the right percentage (orange) shows short positions.)

GBP/USD Technical

• During the early hours of the Asian trading session on Tuesday, the GBP/USD continues to consolidate around 1.6075 after having just eased lower from 1.61.
• Having broken down through the key 1.60 level early last month, the GBP/USD then returned to this level and moved through easily before running into a wall of supply around 1.6050.
• 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 around 1.6075.

 

Further levels in both directions:

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

 

December 11

• AU 0:30 (GMT) NAB Business Conditions (Nov)
• AU 0:30 (GMT) NAB Business Confidence (Nov)
• CA 13:30 (GMT) Merchandise Trade (Oct)
• US 13:30 (GMT) Trade Balance (Oct)
• US 15:00 (GMT) Wholesale Inventories (Oct)

Download the OANDA Forex Market Calendar

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.