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21 Apr 2015
GBP/USD: Supply back in charge
FXStreet (Guatemala) - GBP/USD is currently trading at 1.4921 with a high of 1.4974 and a low of 1.4855.
GBP/USD is trading with a slightly bearish bias while there has been a lack of follow through from the bulls towards the 1.50 mark, coming as a key psychological barrier again. Nevertheless, the rally was strong from the get go at 1.4880 and the move cleared over 90 pips before offers really emerged.
GBP/USD is technically under pressure below the 1.5166/86 downtrend and Karen Jones, chief analyst at Commerzbank, explained that the Fibonacci retracement would at least temporarily halt the bear trend and introduce scope to 1.5550/70 zone, the February high and the 38.2% retracement of the move down from the July 2014 peak.
"Our longer term target remains the 1.4291/29 area – this is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."
GBP/USD is trading with a slightly bearish bias while there has been a lack of follow through from the bulls towards the 1.50 mark, coming as a key psychological barrier again. Nevertheless, the rally was strong from the get go at 1.4880 and the move cleared over 90 pips before offers really emerged.
GBP/USD is technically under pressure below the 1.5166/86 downtrend and Karen Jones, chief analyst at Commerzbank, explained that the Fibonacci retracement would at least temporarily halt the bear trend and introduce scope to 1.5550/70 zone, the February high and the 38.2% retracement of the move down from the July 2014 peak.
"Our longer term target remains the 1.4291/29 area – this is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."