1.6000 Significant Pivot Area For Cable
The current debt problems in Greece have seen a stronger dollar and therefore a weaker pound. The UK labour report and retail figures also disappointed and cable has been under pressure this week.
The pound is one of the weakest currencies when referencing the relative strength correlation charts
Here are the main technicals going into next week:
– GBP/USD long term trend line has broken to the downside. Price has retraced to the trend line break area.
– Cable formed a daily inside bar on Friday 18th June.
– Confluence of 50 percent retrace and price pivot level at 1.6300 could see resistance as could the 61.8 percent retrace combined with trend line confluence at 1.6365.
– The 1.6500 round number is also a significant level.
– Potential support at 1.6000. The line chart below shows how well the level has been respected since 2009.
Visit the authors blog for further Forex Technical Analysis