Friday, October 23, 2015

GBP/USD supply slowing up on 1.53 handle

FXStreet (Guatemala) - GBP/USD is not showing any signs of a recovery in sight as the greenback gets into the driving seat.

The pound came under severe pressure today after posting highs on the 1.55 handle and then drifting from a fade to 1.5486 on the rebound. This is where the supply came in and followed through below the 50 SMA on the hourly chart, slicing up the 20 SMA and 200 SMA until a dead cat bounce of 20 pips was sold into at 1.5415 down to current lows.

GBP/USD levels

Technically, the key 200 DMA is next target at 1.5330 ahead of the 20 DMA at 1.5298 and lows of October at 1.5127. However, ahead of the FOMC it might be a stretch too far and a phase of consolidation on the 1.53 handle is the most likely scenario without further impetus for the rest of the week apart from Markit manufacturing PMI for October. ) -
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