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27 Aug 2013
GBP/USD consolidating reversal
FXstreet.com (Chicago) - GBP/USD continues to give in small losses after declining 0.24% throughout Tuesday’s trading session. The pound has been trading weak compared to other majors despite succeeding to erase partial losses after impulsive market reaction to potential US retaliation to Syrian civilian attack last week.
Stock sell-off
The possibility of war has driven market participants to sell-off stocks, sending the major indexes to the grounds. The Dow is down 0.95% along the Nasdaq down 1.95% and the S&P500 down 1.37%. The pound has been losing strength since last week after reaching 1.57 zone but seems to benefit from the most recent geopolitical events as it extends bullish bias in the afternoon of the American trading session.
GBP/USD Technical Levels
Price action reveals a steady climb from 1.5482 session lows as reversal consolidates. At 1.5538, the pair targets resistances at 1.5544 (August 23rd lows), 1.5562 (August 22nd lows) ahead of 1.5579 (August 23rd highs). On the downside, supports are aligned at 1.5517 (August 15th lows), 1.5496 (August 14th lows) followed by 1.5479 (session lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with price above EMA20 and a CCI pointing up.
Stock sell-off
The possibility of war has driven market participants to sell-off stocks, sending the major indexes to the grounds. The Dow is down 0.95% along the Nasdaq down 1.95% and the S&P500 down 1.37%. The pound has been losing strength since last week after reaching 1.57 zone but seems to benefit from the most recent geopolitical events as it extends bullish bias in the afternoon of the American trading session.
GBP/USD Technical Levels
Price action reveals a steady climb from 1.5482 session lows as reversal consolidates. At 1.5538, the pair targets resistances at 1.5544 (August 23rd lows), 1.5562 (August 22nd lows) ahead of 1.5579 (August 23rd highs). On the downside, supports are aligned at 1.5517 (August 15th lows), 1.5496 (August 14th lows) followed by 1.5479 (session lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis with price above EMA20 and a CCI pointing up.