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5 Sep 2014
GBP/USD on free-fall mode, breaks 1.63
FXStreet (Bali) - GBP/USD has breached the 1.63 handle, hitting yet another fresh low at 1.6285, not seen since Feb 6 this year, following a sharp decline on Thursday in response to the strong rise of the USD across the board.
While the general market sentiment remains strongly bearish on the GBP, one can't help but notice that the Scottish independence referendum on Sept 18 looks somewhat overdone, and that we may be nearing a short term recovery. However, up to this point, there is absolutely no price action clues suggesting so.
Technically, Jim Langlands, Founder at FXCharts, notes that "although the short term charts are heavily oversold, the medium term trend points lower, with 1.6300 being the immediate target (broken) ahead of 1.6285 (38.2% of 1.4813/1.7191). A break of this would suggest a run towards the 5 Feb low at 1.6251 and then the 17 Dec 2013 low at 1.6215. Eventually, I suspect we are in for a run to 1.6000, (50% pivot of 1.4813/1.7191) but could take a while."
While the general market sentiment remains strongly bearish on the GBP, one can't help but notice that the Scottish independence referendum on Sept 18 looks somewhat overdone, and that we may be nearing a short term recovery. However, up to this point, there is absolutely no price action clues suggesting so.
Technically, Jim Langlands, Founder at FXCharts, notes that "although the short term charts are heavily oversold, the medium term trend points lower, with 1.6300 being the immediate target (broken) ahead of 1.6285 (38.2% of 1.4813/1.7191). A break of this would suggest a run towards the 5 Feb low at 1.6251 and then the 17 Dec 2013 low at 1.6215. Eventually, I suspect we are in for a run to 1.6000, (50% pivot of 1.4813/1.7191) but could take a while."