Technical Articles

GBP/USD to Re-vist 1.3000?

 
Posted on 18/10/2017

GBPUSD:- We did, in fact, reach the suggested target region of 1.3100 and dipped slightly lower before retracing back to our Weekly key level of 1.3250 and making highs at 1.3337. This week has seen the price fall almost 200 pips from the recent high price point and break back below the 1.3250 Key level. The recent stalemate in the Brexit negotiations is to be blamed for the recent weakness, with the chief negotiator from Europe suggesting that a deadlock has been reached with either side unable to back down. The market dislikes indecision and therefore we may see some further continued weakness from this pair. 1.3000 remains a crucial psychological barrier and Key level that many traders will be keeping an eye on if the price reaches these lows again. The weekly closure will help determine the next leg of GbpUsd.  

 

PreviousFrom the highs at 1.3600 we have seen the market fall 400 pips in just 3 weeks. We could be expecting some further downside as 1.31000 is the next downside target for this pair with the institutional and psychological key level of 1.3000 sitting 100 pips below that. The current move could be seen as rapid correction and retracement in price as the overall bias direction of this pair will remain to the upside. We have seen price break past 1.3500 and 1.3250 in the most recent downfall. We await for NFP to occur on Friday the 6th to cause volatility among the USD pairs to suggests the next move on this pair in the coming weeks ahead. 

 

 

 

 

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