GBPUSD Technical Analysis – Weak Pound Hits Key Technical Zone – 22/1/13
- Sterling has underperformed over recent trading sessions and this has culminated in a drop to prior support, around the 1.5830 area, with an initial dip under this key level during thin trading today.
- This seven-day losing run is the longest noted for GBPUSD since November 2010.
- This 1.5830 area is aligned with the 50% retrace of the broader range between 1.5267 – 1.6380.
- Any extended downside also brings the previous resistance around 1.5770 back into focus – a clear price pivot zone when last hit – as per the daily chart below.
- The strong cable move lower is yet to see a retrace of note and a level of demand could potentially be seen on profit taking.
- Conversely, any sustained break under the aforementioned areas could be hinting at a move back down near the May 2012 lows.
- Any corrective move higher for the pound/dollar pair has us looking towards the following areas as potential resistance: 1.5915, 1.5954 and 1.6000 (see the D1 chart for reference).
GBP/USD Technical Analysis – 22/1/13
GBPUSD Technical Report, Forex Price Action Analysis, Pound Weakness.