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8 Sep 2014
GBP/USD is not ready to rise from the dead
FXStreet (Moscow) - GBP/USD is depressed below 1.62, as Scotland Independence saga is on tap.
Is the weakness justified?
While the pound bumped into strong psychological support at 1.63 on Friday, it didn’t stop the pair from falling below on news that Scotts are ready to be independent from the UK. The pair has already showed an impressive move down, and every time it stopped around some level, it made the market guessing – was it the bottom? This time is not an exception. Strong fundamental data questions if the scope of the pound weakness justified. The pair needs to get several strong economic reports in a row in order to rise from the dead, or at least one positive comment from Mark Carney. He is scheduled to speak on Tuesday, and his words may spark some volatility in the pair.
What are today’s key GBP/USD levels?
Current price is 1.6161, with resistance ahead at 1.6167 (Daily Open), 1.6189, 1.6230, 1.6234 (Daily High) and 1.6256 (Daily Classic S2).
Next support to the downside can be found at 1.6145 (Daily Low), 1.6053 (Weekly Classic S2), 1.5825 (Weekly Classic S3), 1.5694 (Annual Low) and 1.4868 (3 Year Low).
Looking at price patterns, we can see a Doji 4-hour candlestick formation.
Is the weakness justified?
While the pound bumped into strong psychological support at 1.63 on Friday, it didn’t stop the pair from falling below on news that Scotts are ready to be independent from the UK. The pair has already showed an impressive move down, and every time it stopped around some level, it made the market guessing – was it the bottom? This time is not an exception. Strong fundamental data questions if the scope of the pound weakness justified. The pair needs to get several strong economic reports in a row in order to rise from the dead, or at least one positive comment from Mark Carney. He is scheduled to speak on Tuesday, and his words may spark some volatility in the pair.
What are today’s key GBP/USD levels?
Current price is 1.6161, with resistance ahead at 1.6167 (Daily Open), 1.6189, 1.6230, 1.6234 (Daily High) and 1.6256 (Daily Classic S2).
Next support to the downside can be found at 1.6145 (Daily Low), 1.6053 (Weekly Classic S2), 1.5825 (Weekly Classic S3), 1.5694 (Annual Low) and 1.4868 (3 Year Low).
Looking at price patterns, we can see a Doji 4-hour candlestick formation.