Tuesday, October 27, 2015

GBP/USD: minor recovery taking shape

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5357 with a high of 1.5383 and a low of 1.5303.

GBP/USD is consolidating and remains in a recovery of the recent downtrend on the hourly charts from a touch on the 1.55 handle on the 22nd Oct before supply came in and took the major down through the 200 SMA and below the 50 SMA also on the same time frame.

The price found traction at 1.5305 and has drifted up to meet the 55 SMA again where the price is oscillating at time of writing at 1.5370. We await the FOMC this week and UK GDP.

GBP/USD levels

Technically, Karen Jones, chief analyst at Commerzbank explained that attention has reverted to underlying support and initially the 20 day ma at 1.5315. "A move below 1.5280 is required to alleviate immediate upside pressure (and is now favoured) but we will need a move sub 1.5200 to retarget the 1.5108 low. The more important 1.5086/1.5000 support which is the 61.8% retracement and psychological support is likely to provide strong support."
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