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12 Mar 2013
Forex: GBP/USD below 1.49 ahead of key UK data
Cable is down at fresh session lows 1.4891 from NY session highs printed at 1.4933, few pips below previous London and weekly highs at 1.4944. Pound is the third weakest major currency since March started, only above Yen, the weakest of all by far, and in a close match with Swiss franc. The pair is still above yesterday's lows at 1.4865, the lowest seen since June 2010. For the London session ahead UK Manufacturing production for January on monthly basis at 09:30 GMT will be key risk event of the day, along with UK Trade balance and Industrial production at same hour.
As Valeria Bednarik notes, Chief Analyst at Fxstreet.com: “The GBP/USD fell as low as 1.4864 before bouncing higher, still with the upside limited and with the bearish trend intact,” the analyst says, adding: “Despite latest recovery, the hourly chart shows indicators back in negative territory and price hovering around a flat 20 SMA, while 4 hours ones maintain a strong bearish tone. The 1.4870 area is the main support today, and renewed selling pressure below should expose the 1.4810 price zone,” she suggests.
Valeria finds support levels at: 1.4870, 1.4835 and 1.4810, while resistance levels at: 1.4940, 1.4985 and 1.5010.
As Valeria Bednarik notes, Chief Analyst at Fxstreet.com: “The GBP/USD fell as low as 1.4864 before bouncing higher, still with the upside limited and with the bearish trend intact,” the analyst says, adding: “Despite latest recovery, the hourly chart shows indicators back in negative territory and price hovering around a flat 20 SMA, while 4 hours ones maintain a strong bearish tone. The 1.4870 area is the main support today, and renewed selling pressure below should expose the 1.4810 price zone,” she suggests.
Valeria finds support levels at: 1.4870, 1.4835 and 1.4810, while resistance levels at: 1.4940, 1.4985 and 1.5010.