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30 Sep 2013
GBP/USD lining up to extend the upside?
FXstreet.com (London) - GBP/USD is stalling ahead of the 1.6200 handle. The pair faces a number of risk factors this week.
GBP/USD is printing a high of 1.6204 where the pair spiked from 1.6145 territory earlier in the session in an extension of the bull run from Friday below 1.6060. This week the pair faces US job numbers as the main event, but in the mean time, markets are nervous ahead of the House of Representatives and the Senate deadline of which if they fail to agree on a continuing resolution by midnight, the government will have to shut down partially tomorrow. Meanwhile, RBS research explained that outflows of debt income have been rising fairly steadily. This will only get worse as: 1) the BoE isn't buying anymore; and 2) the fiscal deficit has stopped improving. This leaves us believing that the air above is thinning rapidly for GBP, most notably GBP/USD.
GBP/USD Levels
The 20 DMA is, 1.5858, the 50 DMA is 1.5617 and the 200 DMA is 1.5481. RSI (14) is 64.79. Supports are ascending from 1.6040, 1.6062, 1.6100, and 1.6140. Spot is currently 1.6183 while resistances are 1.6218, 1.6257, 1.6310 and 1.6380.
GBP/USD is printing a high of 1.6204 where the pair spiked from 1.6145 territory earlier in the session in an extension of the bull run from Friday below 1.6060. This week the pair faces US job numbers as the main event, but in the mean time, markets are nervous ahead of the House of Representatives and the Senate deadline of which if they fail to agree on a continuing resolution by midnight, the government will have to shut down partially tomorrow. Meanwhile, RBS research explained that outflows of debt income have been rising fairly steadily. This will only get worse as: 1) the BoE isn't buying anymore; and 2) the fiscal deficit has stopped improving. This leaves us believing that the air above is thinning rapidly for GBP, most notably GBP/USD.
GBP/USD Levels
The 20 DMA is, 1.5858, the 50 DMA is 1.5617 and the 200 DMA is 1.5481. RSI (14) is 64.79. Supports are ascending from 1.6040, 1.6062, 1.6100, and 1.6140. Spot is currently 1.6183 while resistances are 1.6218, 1.6257, 1.6310 and 1.6380.