6 Nov 2013
GBP/USD fails to hold above 1.6100
FXstreet.com (Córdoba) - The GBP/USD failed to extend UK IP-propelled gains and pulled back below 1.6100 as US traders join the market.
The GBP/USD extended gains into a third day and climbed nearly 80 pips to a high of 1.6117 during the European session after data showed UK industrial production grew more than expected in September. However, the GBP/USD lost momentum and gave up some ground to currently trade at 1.6090, still 0.3% above its opening price.
GBP/USD technical outlook
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that GBP/USD holds the positive tone in short-term charts with 1.6120 as immediate resistance (61.8% retracement of its latest daily fall). "Some consolidation should be expected around that level, yet once above the pair has room to extend up to 1.6160/80 price congestion zone", says Bednarik. "Dips will likely provide buying opportunities now, with 1.6060/70 area, 50% retracement of the same rally and static level as first support to consider".
The GBP/USD extended gains into a third day and climbed nearly 80 pips to a high of 1.6117 during the European session after data showed UK industrial production grew more than expected in September. However, the GBP/USD lost momentum and gave up some ground to currently trade at 1.6090, still 0.3% above its opening price.
GBP/USD technical outlook
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that GBP/USD holds the positive tone in short-term charts with 1.6120 as immediate resistance (61.8% retracement of its latest daily fall). "Some consolidation should be expected around that level, yet once above the pair has room to extend up to 1.6160/80 price congestion zone", says Bednarik. "Dips will likely provide buying opportunities now, with 1.6060/70 area, 50% retracement of the same rally and static level as first support to consider".