29 Nov 2013
GBP/USD finds support ahead of 1.6300
FXstreet.com (Córdoba) - The GBP/USD found support at the 1.6310 area and halted the downward correction that started after the pair printed a fresh 11-month high of 1.6373.
Coupled with a technical correction, the GBP came under pressure during the European session in the wake of disappointing UK mortgage and lending data and slid to a low of 1.6313 versus the USD. However, the GBP/USD managed to bounce and it is currently trading at the 1.6335 zone, virtually unchanged on the day, ahead of an empty (in the data front) NY session.
GBP/USD technical outlook
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that GBP/USD maintains the overall bullish tone as, despite extreme overbought readings, corrective movements remain shallow.
"Further gains should be expected on price accelerations beyond 1.6380 yearly high, eyeing then the 1.6425/40 area, where the pair presents several daily highs and lows from August/September 2011", says Bednarik. "To the downside, main support comes around 1.6290, and a break below it may favor a downward correction towards 1.6250, albeit this latter should again attract buyers if reached".
Coupled with a technical correction, the GBP came under pressure during the European session in the wake of disappointing UK mortgage and lending data and slid to a low of 1.6313 versus the USD. However, the GBP/USD managed to bounce and it is currently trading at the 1.6335 zone, virtually unchanged on the day, ahead of an empty (in the data front) NY session.
GBP/USD technical outlook
From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com notes that GBP/USD maintains the overall bullish tone as, despite extreme overbought readings, corrective movements remain shallow.
"Further gains should be expected on price accelerations beyond 1.6380 yearly high, eyeing then the 1.6425/40 area, where the pair presents several daily highs and lows from August/September 2011", says Bednarik. "To the downside, main support comes around 1.6290, and a break below it may favor a downward correction towards 1.6250, albeit this latter should again attract buyers if reached".