🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Top In The Pound?

Published 01/02/2014, 01:33 PM
Updated 07/09/2023, 06:31 AM
GBP/USD
-
Talking Points
    • Strong negative January seasonality in the Pound
    • Important cycle turn window this week


GBP/USD failed earlier today just below the 15th square root relationship of the 2012 low at 1.6610. This reversal has the potential to be significant given it has come during the Fibonacci cycle turn window we highlighted last week. January is also one of the worse performing months for the Pound on a seasonal basis so several factors seem to be aligning here for decent counter-trend move lower - if not a full-fledged reversal. Key support for us looks to be the 1.6410 level as a daily close below this level will confirm that a top of some importance is indeed in place. The 1.6610 resistance should hold over the next few days if the negative cyclical view is correct
<span class=GBP/USD: Daily" title="GBP/USD: Daily" width="680" height="285">
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risks
LEVELS TO WATCH

    • Resistance: 1.6560 (Gann), 1.6610 (Gann)
    • Support: 1.6410 (Gann), 1.6380 (Gann)

Strategy: Sell GBP/USD

    • Stop: 1.6617
    • Target: 1.6350

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.