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GBP/USD drops to 1-week lows; remains above 1.5400

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 21, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - Cable bounced from daily highs and dropped to 1.5411, hitting the lowest level in a week but still remains sideways moving in a range between 1.5400 and 1.5500. Currently it trades at 1.5425/30, down 0.10% for the day.

    GBP/USD is about to post the sixth consecutive daily close between 1.5420 and 1.5470 as it continues to consolidate, after rallying during from 1.5105 (Oct 1 low) to 1.5508 (Oct 15 high). Tomorrow it going to be the European Central Bank day but in the United Kingdom traders attention will be over the September retail sales report.

    GBP/USD stuck around 1.5450

    The rally of the pound found resistance at 1.5500. Despite trading momentarily above several times during the last few days, it was unable to consolidate, suffering constant rejections. The correction from those levels continues to be limited, as the area above 1.5400 offers support.

    Momentum continues to favor the pound on a wider perspective and taking into the daily chart but as long as it fails to confirm above 1.5500 it could remain limited with the doors open for a bearish correction. To the downside, support might lie at 1.5410, 1.5385 (Oct 9 & 13 high) and 1.5330 (Sep 15 & 16 low).
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