GBP / USD - Trying to Rally Back to 1.5850

February 11, 2013

Over the last couple of days, the GBP/USD has rallied well after finding some support around 1.5650 and 1.57 which has been able to temporarily halt the strong fall.   Over the last month, the Cable has steadily slid lower below 1.57 from near 1.64.   For the last couple of weeks, the GBP/USD had been doing its best to rally and push back off the support level at 1.57, however during last week it was met with strong supply which eventually pushed it to its lowest levels  since August last year (touching 1.5630).   Over the last few weeks it has experienced a rollercoaster ride back and forth between two key levels at 1.57 and 1.5850.

Over the last month or so, the Cable has met excess supply around 1.63 and 1.6150 as both of these levels have become strong resistance levels forcing the price away and back below 1.60. This fall has continued down to the key 1.5850 level which temporarily halted the decline for a few days only to see the Cable continue lower. Over the bigger picture, the Cable has now traded within a wide range of 6 cents over the last four months or so, as these levels continue to play a role every time the price approaches one of them, as you can see in the daily chart below.   The recent key level at 1.57 seems to have taken its time to hold up and continue to provide support however its persistence seems to have paid off.

Also over the last month or so, the Cable has displayed interesting price action as it has firmly established some key levels 150 pips from each other. These levels are at 1.63, 1.6150, 1.60, 1.5850 and most recently 1.57. Over the course of the last few weeks, the Cable has fallen sharply from levels not seen for about 15 months up near 1.64.

Last week, there were no surprises from the BOE, as it maintained present levels for QE and the benchmark interest rate.   All eyes were on the Bank of England, which set its interest rate and Asset Purchase Facility (QE) levels. As was widely expected, the central bank continued with more of the same. The benchmark interest rate was pegged at 0.50%, while QE remains at 375 billion pounds each month. The ECB also kept its current rate at 0.75%. Other UK releases last week were solid. Manufacturing Production rose a robust 1.6%, easily beating the estimate of 0.7%.

(Daily chart / 4 hourly chart below)

Publication source
OANDA information  OANDA reviews

October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...
October 19, 2016
A bullish presence on the market
The Dollar upturn seen in the recent weeks that was influenced by the firm belief in a rate hike of December fizzles out, after Yellen’s speech and the downbeat US inflation and manufacturing data...

OctaFX Rating Rating
OANDA Rating
Tickmill Rating
FIBO Group Rating
FXCM Rating

OptionFair Rating
IQ Option Rating
TropicalTrade Rating
EZTrader Rating
OptionsXO Rating
Beeoptions Rating