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20 Sep 2013
GBP/USD bouncing modestly at 1.6042 after downside correction day Thursday
FXstreet.com (Barcelona) - After a huge run recently, GBP/USD appears to be in the early stages of a consolidation phase with limited downside. Big data flow next week will drive the action.
GBP/USD traders to focus on Washington happenings Friday and data next week
So, the message from the data and news flow this week was Britain is strong and able to look at easing up on stimulus while the US may be getting better but the FOMC is pretending it is still March of 2009. That combination of factors sent the GBP/USD soaring up to its third wave target of 1.6162 before backing off modestly Friday.
Thursday brought about a modest turn in direction in GBP/USD which may continue heading into the weekend as there are no data due out Friday. Next week’s calendar is pretty full, though, and GBP/USD’s fate will rest on traders’ interpretations of what it all means to central bankers.
Technical outlook for GBP/USD
Technicians say Thursday’s minor weakness in GBP/USD may have just been the beginning of a fourth wave correction / consolidation. Support for this correction comes in at 1.5894 and possibly down at 1.5728. Resistance for the cross comes in at 1.6162.
GBP/USD traders to focus on Washington happenings Friday and data next week
So, the message from the data and news flow this week was Britain is strong and able to look at easing up on stimulus while the US may be getting better but the FOMC is pretending it is still March of 2009. That combination of factors sent the GBP/USD soaring up to its third wave target of 1.6162 before backing off modestly Friday.
Thursday brought about a modest turn in direction in GBP/USD which may continue heading into the weekend as there are no data due out Friday. Next week’s calendar is pretty full, though, and GBP/USD’s fate will rest on traders’ interpretations of what it all means to central bankers.
Technical outlook for GBP/USD
Technicians say Thursday’s minor weakness in GBP/USD may have just been the beginning of a fourth wave correction / consolidation. Support for this correction comes in at 1.5894 and possibly down at 1.5728. Resistance for the cross comes in at 1.6162.