Introduction
After reaching its highest level this year, at 1.6303,
GBP/USD has dropped significantly to 1.6064. Notably, the pair has touched the
ascending trend line, and it may bounce off it or continue dropping down.
Factors Affecting:
It seems the pound has also absorbed the economic woes of
the euro zone as depicted by its poor performance in recent days. Thanks to
risk aversion, the dollar has gained considerably across the board. And,
although the pound has sometimes got some breathing space, it has continued
with its downward momentum. In the
coming week, traders will be paying close attention to news from the United
Kingdom for any clues on the performance of the currency.
Technical Analysis:
Technical analysis on the GBP/USD reveals it has touched an
ascending trend line. Immediate resistance is found at 1.6128. A confirmed
break above this could expose 1.6303. Immediate support is found at 1.5988. A
confirmed break below this could expose 1.5790.
Forecast:
The best case scenario would be to wait and see if price
bounces off the trend line or if it convincingly breaks it. Otherwise,
aggressive short term traders can as well short the pair.
For more information about technical analysis and latest Forex news click here.
Disclaimer:
THE
ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS
SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY
WITH THE READER.