The GBP/USD has been losing ground steadily after posting a year high of 1.6308 late September, trading inside a descendant channel for these first days of October; the bearish momentum has took another step breaking below the base of the channel yesterday, and completing a shy pullback to the base in the European morning, before worse than expected UK trade balance send the pair to a fresh low of 1.6001. Stops continue to buildup right below the level, while market sentiment that keeps stocks and commodity in red, favoring more dollar gains.
Technical readings of the 4 hours chart show a strong bearish tone, with 20 SMA turning strongly down above current price and momentum and RSI heading south after a limited correction near oversold levels: an acceleration below 1.5990 will likely take the pair towards next support level, around the 1.5920/30 price zone, followed later by 1.5880.
Recoveries will find resistance around 1.6048 daily high, while steady gains above 1.6060 will deny the possibility of further falls in the short term, with scope to extend the recovery near 1.6100.
Valeria Bednarik was key speaker at the FXStreet International Traders Conference in October 2009 - Barcelona.
Valeria Bednarik has been an active trader since 2003, specializing in the International Foreign Exchange Market.
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