GBP Trading Outlook
The Sterling (GBP) the GBP/USD surged above 1.5800 with the Euro led market turnaround late in the European session. The GBP/USD now looking to recent highs above 1.5900 as the bulls target short term.
The Sterling (GBP) was weak but only fell gently over the day as the Pound found support through the EUR/GBP cross which came back to life moving sharply back to 0.8300. GBP/USD is falling to 1.5650 support and bears are targeting 1.5500 in coming sessions.
The Sterling (GBP) was on the back foot all day as the Moody’s negative watch on the cherished AAA rating of the UK reminded investors that the European crisis affects its close neighbor. Support is seen at 1.5600 and 1.55000 if the selloff continues.
The Sterling (GBP) the Moody warning added to the technical failure overnight and sent the GBP/USD back below 1.5700 at the time on writing with the focus back on the downside. The failure of the EUR/USD and the GBP/USD to break key resistances in the last week has threatened to halt the uptrend both have enjoyed lately.
The Sterling (GBP) was heavy on Friday pulling sharply back to Monday lows at 1.5730 before once again finding support. So far on Monday cable is nearly back to 1.5800. Resistance above 1.5900 proved too much for cable last week which moved sharply higher in the January. A successful Greece resolution could prompt a retest and move to 1.6000 a key level in 2011.
Go to The Sterling (GBP) Archive