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26 Aug 2013
GBP/USD vulnerable after failing at 1.5738 correction resistance
FXstreet.com (Barcelona) - GBP/USD will need to force the cross above 1.5738 to negate the potentially very bearish set-up on the daily chart.
GBP/USD will rely on US Durable Goods data for direction Monday
After failing to break and close above key “correction resistance” at 1.5738 last week, GBP/USD bulls will have to hope for more weak data from the US on Monday – in the form of durable goods data – to reverse the recent weakness in the cross. There will be no data out of Britain Monday since it’s a summer bank holiday. The bulls instead will be hoping for the DXY negativity generated from last Friday’s weak US housing data to continue.
Technical outlook for GBP/USD
Technicians are still calling for GBP/USD to move down towards the ultimate target of 1.4551. They note that only a close above 1.5738 will force them to reconsider this bearish outlook. Shorter-term support comes into play at 1.5422 (the 8/14 pivot low).
GBP/USD will rely on US Durable Goods data for direction Monday
After failing to break and close above key “correction resistance” at 1.5738 last week, GBP/USD bulls will have to hope for more weak data from the US on Monday – in the form of durable goods data – to reverse the recent weakness in the cross. There will be no data out of Britain Monday since it’s a summer bank holiday. The bulls instead will be hoping for the DXY negativity generated from last Friday’s weak US housing data to continue.
Technical outlook for GBP/USD
Technicians are still calling for GBP/USD to move down towards the ultimate target of 1.4551. They note that only a close above 1.5738 will force them to reconsider this bearish outlook. Shorter-term support comes into play at 1.5422 (the 8/14 pivot low).