GBP/USD – Relying on Support at 1.5950 Level

GBP/USD – Relying on Support at 1.5950 Level

GBP / USD for Friday, October 11, 2013

In last month, the GBP / USD has rallied and surged sharply higher to go through many levels that was punctuated by a push to its highest level for the year just above 1.6250. For the last week but it was easing back to 1.60 and 1.5950 with the latter recently broken level in the last day or two. In the last 24 hours, it rallied above 1.5950 receiving support at this level. A few weeks ago, he found strong support from the 1.5950 level which helped to move at the level of 1.6250, and it relies on that level again now. There stall around 1.59 to 1.5950 for a few days there a few weeks before clearing the congestion zone. There are about a month, it fell to two weeks low near 1.54 before rallying back to 1.5550. The week before he did well to maintain its level above the 1.56 key level and in the process of moving to a new two-month above 1.57, which was overtaken by the recent summit. She immediately fell sharply, but continued to receive strong support from the level of 1.56 before closing below at the end of this week.

Back in the middle of August the pound jumped higher level through the 1.56 resistance and then a two-month high around 1.5650, before passing the next few days to consolidate and trade in a range close around 1.5650, receiving the support of the key 1.56 level. There are some months, the 1.54 resistance level proves to be strong enough, and once he crossed the pound surged to a fresh seven weeks high near 1.56 in a solid 48 hours period term. In the week before that the book had rebounded strongly and returned at the previous resistance at 1.54 after the week earlier undo some of his good work and strong apostasy of the 1.54 resistance level down to about 1.5150 and low two weeks. There are a few weeks, the level of 1.54 resistance was firm and the pound fell heavily away, but the support level of 1.51 was decisive and strongly contributed to the rally of the pound.

Earlier in July, after doing very little for about a week, the GBP / USD began to move and jump higher and move through the levels of 1.52 and 1.53 to the one-month high above 1.54. Before the movement above, it moved very little because it has found strong support at 1.51 and traded in a narrow range above that level. He established a trading range between 1.51 and 1.52 after taking a break from his excitement when just before she experienced strong higher thrust moving to the scope of the 1.52 level below 1.49, the while 24 hours. There are about a month, he did well to climb off the canvas and move above 1.49 and towards 1.50 before seeing again the book and reverse back down below 1.49 to a new multi-year low near 1.48. He experienced heavy falls of 1.53 mobile to level long-term key to 1.50, then 1.49. This movement has seen resume its bearish medium-term trend already well established in the second half of June and the move to a four-month low.

The International Monetary Fund urged George Osborne to boost spending on infrastructure in Britain, despite the upward revision of its growth forecast for the UK more than any other developed country. In a generally pessimistic assessment of the state of the global economy, the Fund based in Washington said it now expects the pace of expansion to be significantly higher than it was three months. But it triggered a new dispute between Osborne and his Labour shadow Ed Balls to whether the government's austerity program had helped or hindered the recovery of the deepest recession in Britain's post-war. half yearly global economic outlook Fund cut its forecast for global growth in 2013 and 2014, accusing the impact of clumsy attempts to reduce the budget deficit in the US and a slowdown in major emerging market economies. But he said the UK had bucked the trend, the revision of its estimates of growth by 0.5 point to 1.4% in 2013 and by 0.4 points to 1.9% in 2014. The IMF has embarrassed the chancellor in his WEO in April this year, when he called on the UK to ease up on its austerity plans to enhance recovery prospects. Although THECITY forecasts growth of about 1% in the third quarter, the Fund renewed its call for higher public spending.

(daily chart / 4 hourly chart below)

GBP / 11 USD October at 00:45 GMT H 1.5970: 1.5979 L : 1.5913

GBP / technical USD

S3	S2	S1	R1	R2	R3
1.5950	1.5800	-	1.6100	1.6250	-

During the first hours of the Asian session on Friday, GBP / USD is consolidating in a narrow range just below 1.60 after rallying back above the support level at 1.5950. Since the middle of June the pound has fallen sharply from the level of resistance at 1.57 down to the long-term key level at 1.50 and is now enjoying a strong resurgence in the last two months return movement of above 1.62 and its highest point for the year. Current range: Just below 1.60 around 1.5980

Other levels in both directions :.

• The following :. 1.5950 and 1.5800

• Above :. 1.6100 and 1.6250

Open Ratios position OANDA

(shows the ratio of long short positions vs outfit for the GBP / USD. between all OANDA clients left percentage (blue) shows long positions, the percentage right (orange) shows short positions)

report GBP / USD long positions is moved below 30% again the GBP /. USD pushed above 1.5950. Trader sentiment remains largely in favor of short positions.

Economic Releases

• 11:50 p.m. (game) JP M2 money supply (September)
• 11:50 p.m. (game) JP CGPI (September)
• 12:30 CA unemployment (September)

* All times are GMT release of

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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