GBPUSD Technical Analysis – FX Price Action Update – WC 21/1/13
(Forex-FX-4X.com, Weekly Analysis, GBP/USD Technical Analysis Update, Week Of 21/1/13)
- Cable has seen extended downside price action since the 2/1/13 pinbar at key 1.6300 area resistance. This has now culminated in a break under the ascending trend line drawn from the June 2012 lows.
- The trend line breakout also represents a sustained move under the 1.6000 handle round number area. This area has recently acted as support, with associated order flow. The move under 1.5945 (Thursdays low) met with significant GBP/USD volatility which likely came as fresh shorts were initiated and stop loss orders triggered.
- The weekly close came just above previous support around 1.5830. The 1.578 area is another prominent technical point of interest, as this provided significant resistance when last hit in mid 2012.
- The above price action comes in the context of a GBP/USD weekly timeframe bearish outside candle – as previously reported here.
- The latest COT report (commitment of traders) update from the CFTC shows a British pound (CME) net long position at 28K versus the 26K seen last week. This does not however capture the bearish action from late this week.
- Sterling has underperformed during recent trading with GBP/CHF erasing prior gains from earlier in the week and the EUR/GBP pair trading near the 0.8400 handle, an area last seen in early 2012.
GBP/USD Technical Update – Daily Chart
GBPUSD Forecast 21/3/13, Technical report, Pound/Dollar Outlook, Forex Price Action