The GBP is obviously the fundamental and technical focus for the day today. The currency is lower against all the major currencies – losing the most against the dollar where it is down -1.15% from Friday’s closing level.
The chart below shows how the GBP has traded against the major currencies (% change basis). Not much strength showing (although it is off the lows).
GBPUSD is down against all the major currency pairs.
From a technical perspective, the GBPUSD today has been able to stay below the underside of the broken channel trend line on the hourly chart (see chart below). The subsequent fall, lower has extended to the 1.6100 area, where buyers have emerged (makes sense). The sellers, however, remain in control, with the 38.2-50% and the same underside of the channel acting as resistance in the 1.6192-20 level now. The underside of the channel trend line at the 1.6201 currently (and moving lower on each hour). For this week, stay below these levels and the sellers remain in control.
GBPUSD has broken trend line and 38.2%-50% as resistance in trading today
Should the bears remain in control (the fear from Scotland is keeping the pressure on) the 1.6000 is the 50% of the move up from the July 2013 low to the high seen in July 2014 (see chart below). It would take some effort to get there in trading today (we are a long ways away from the close from Friday at 1.6328) but going forward, that is the next key target.
GBPUSD next major target is the 50% of the move up from 2013 low to 2014 high at 1.6000
Looking closer at the action today, on the 5 minute chart, the 100 bar MA is at the 1.6154 level currently. The 38.2%-50% of the move lower today, is at 1.6152-67 (see chart below). This should be the close resistance for intraday traders now should the trend bias lower continue.
Close resistance comes in off the 5 minute chart. The 100 bar MA is at 1.6154 currently.
Finally, if you would rather here me speak to the GBPUSD, I have cut down the video produced last night outlining the resistance and target levels (optional listening….; ) NOTE the haircut )
Good fortune with your trading….
