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23 Sep 2013
GBP/USD in the middle – not the end – of a short-term pullback; support 1.5894
FXstreet.com (Barcelona) - After a huge run recently, GBP/USD appears to be in the midst of a consolidation phase with limited downside. Big data flow this week will drive the action.
GBP/USD traders to focus on data flow this week instead of central bankers
After a week where England was viewed as strong and able to look at easing up on stimulus while the US FOMC is choosing to remain in full easing mode. That combination of factors sent the GBP/USD soaring up to its third wave target of 1.6162 on Wednesday. Since then, however, the cross has been in what appears to be a fourth wave correction (according to Elliott Wave technicians) with a downside target of 1.5894.
This week, GBP/USD traders will get a nice flow of market-moving data points to digest – starting with the 10 and 30-year bond auctions in England, manufacturing PMI and the Chicago Fed National Activity Index in the US. Additionally, “Fed heads” Dudley and Lockhart will be giving speeches.
Technical outlook for GBP/USD
Technicians say GBP/USD should continue lower until support at 1.5894 is tested. Beyond that, 1.5728 is the next possible support level. Resistance for the cross comes in at 1.6162.
GBP/USD traders to focus on data flow this week instead of central bankers
After a week where England was viewed as strong and able to look at easing up on stimulus while the US FOMC is choosing to remain in full easing mode. That combination of factors sent the GBP/USD soaring up to its third wave target of 1.6162 on Wednesday. Since then, however, the cross has been in what appears to be a fourth wave correction (according to Elliott Wave technicians) with a downside target of 1.5894.
This week, GBP/USD traders will get a nice flow of market-moving data points to digest – starting with the 10 and 30-year bond auctions in England, manufacturing PMI and the Chicago Fed National Activity Index in the US. Additionally, “Fed heads” Dudley and Lockhart will be giving speeches.
Technical outlook for GBP/USD
Technicians say GBP/USD should continue lower until support at 1.5894 is tested. Beyond that, 1.5728 is the next possible support level. Resistance for the cross comes in at 1.6162.