3 11 pips the damage below 1.6100 as the cable slump continues. I said a few days ago that it looked like it might run out of steam and that seems to be the case. There’s no real news to knock it down so it’s more a case of the initial upward trend burning out. All good trends need a refresh now and again, so it’s still likely to be in the bulls hands when they decide that it’s low enough to load up again.
GBP/USD daily chart 04 10 2013
Keep an eye on the possible support areas signalled by the previous lows as possible levels for buyers to come in at. After the lower one at 1.5881 we have the bottom of the short term channel at 1.5838. Nearer, and as noted in the title bids at 1.6080 are in place to stem any falls so we’ll see how they do when tested. Given the stronger bids at 1.6100 didn’t hold up too much we may seen them go just as easily.
We’ll need to reclaim 1.6100 fairly soon to have an attempt back up, but the sellers are well in control at the moment. 1.6150 and 1.6180 are likely to have become resistance levels should we have a run up.
