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4 Oct 2013
GBP/USD extends decline to 1-week low
FXstreet.com (Córdoba) - The GBP/USD deepened its correction and stretched to fresh lows at the beginning of the American session without a clear catalyst other than profit taking.
GBP/USD weighed by profit taking
GBP/USD extended losses into a second day Friday and broke below several support levels before finding interim support at 1.6032 where it printed its lowest in a week. With no much in the US calendar, and the non-farm payrolls release canceled due to the government shutdown, the pair might enjoy some consolidation heading into the weekend.
GBP/USD technical levels
At time of writing, GBP/USD is trading at the 1.6050 zone, recording a 0.6% loss on the day, with immediate supports at 1.6032 (daily low) and 1.6000 (psychological level/20-day SMA), while resistances on bounces could be found at 1.6110 (10-day SMA) and 1.6180 (daily high).
Valeria Bednarik, chief analyst at FXstreet.com, notes that the movement seems mostly corrective and only a daily close below 1.5970 will signal an interim top and further slides ahead. "Price needs to recover above the 1.6110 level, to be able to shrug off some of its intraday negative tone, and attempt a recovery back to the 1.6150 area", the analyst said.
GBP/USD weighed by profit taking
GBP/USD extended losses into a second day Friday and broke below several support levels before finding interim support at 1.6032 where it printed its lowest in a week. With no much in the US calendar, and the non-farm payrolls release canceled due to the government shutdown, the pair might enjoy some consolidation heading into the weekend.
GBP/USD technical levels
At time of writing, GBP/USD is trading at the 1.6050 zone, recording a 0.6% loss on the day, with immediate supports at 1.6032 (daily low) and 1.6000 (psychological level/20-day SMA), while resistances on bounces could be found at 1.6110 (10-day SMA) and 1.6180 (daily high).
Valeria Bednarik, chief analyst at FXstreet.com, notes that the movement seems mostly corrective and only a daily close below 1.5970 will signal an interim top and further slides ahead. "Price needs to recover above the 1.6110 level, to be able to shrug off some of its intraday negative tone, and attempt a recovery back to the 1.6150 area", the analyst said.