GBP/USD Stalls below Major Resistance
James Chen October 25, 2013 8:30 PM
<p>GBP/USD (daily chart) has stalled for the past week in a tight, low-volatility consolidation just below major resistance at 1.6300. The 1.6300 level is an […]</p>
GBP/USD (daily chart) has stalled for the past week in a tight, low-volatility consolidation just below major resistance at 1.6300. The 1.6300 level is an exceptionally strong resistance area, as it has been tested and held firmly on at least three occasions in the past year and a half. The current consolidation pattern underneath this resistance occurs within the context of a long and steep uptrend that has been in place since July’s re-test of the 1.4800 support area. Despite having a major resistance barrier immediately above, most technical indications are still pointing to the upside. If the pair is able to reach and breach the 1.6300 level, further upside price objectives reside at the important 1.6500 and 1.6750 levels. To the downside, any breakdown of the current steep uptrend should meet strong support once again around the key 1.6000 technical and psychological level.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.