GBPUSD Technical Analysis Update – Week Of March 4th 2013
- The GBPUSD currency pair has seen a continuation of the recent bearish price action, with a move to a fresh 31-month low.
- The market took out the key 1.5000 handle during trading on Friday, but ultimately ended the day/week around 1.5030, as traders squared positions heading into the weekend.
- COT report data from the CFTC reveals that bearish wagers on sterling by large futures traders, at the Chicago Mercantile Exchange, are at the highest level in around a year with 36,130 net short contracts. Traders are essentially betting on more money-printing from the BOE (Bank of England) going forward.
- Any sustained corrective move to the upside would have us monitoring the following key areas:
- 1.5069 -1.5079 area (aligned with 25/2/13 low),
- 1.5220 – 1.5233 zone (13/1/12 low and 28/2/13 high respectively).
- To the downside:
- The 1.5000 handle, psychological whole number area.
- 1.4985 marks the recent (31-month) lows,
- The GBPUSD trading range last week covered 236 pips - 119% of the AWR over 26-weeks. Friday registered a highly volatile day covering 200 pips, 212% of the average over 60-days.
Nick Simpson, Forex-FX-4X.com, GBPUSD Analysis