GBPUSD Technical Update – 25th February 2013 – Cable Closes Gap
(Nick Simpson, Forex-FX-4X.com, 25/2/13)
- Cable gapped to the downside during the Asian open and printed a low around 1.5071, in thin illiquid trading conditions. GBPUSD dropped to a 31-month low, EURGBP a 16-month high.
- The European trading session has subsequently seen the pound/dollar pair close this opening gap, with an intra-day high of 1.5161 as this post is written. We note that these gap close areas can sometimes act as support or resistance in their own right.
- The GBPUSD pair had moved as high as 1.5318 last Friday, prior to the release of the report highlighting the loss of the UK’s AAA credit rating, which had the currency pair plummet in late trading.
- Any corrective move higher would have us monitoring the following technical areas of interest:
- 1.5265 marks the 27/5/12 daily low and is aligned with the longer term range lows.
- The 1.5318 area marks Friday’s high,
- 1.5369 is the 23.6% Fibonacci retrace of the leg lower from 1.6307 – 1.5071
- To the downside:
- The 1.5071 area marks the Asian session low.
- The 1.500 psychological round number area follows as a key potential focus for the pound/dollar pair.