GBP/USD: Resistance At 1,6665
Olimpiu Tuns | Aug 20, 2014 08:26AM ET
GBP/USD: Correction On Daily Chart
We have a retracement on daily chart, the price is trading below a former support (1,6665). It seems that the dollar is strong enough to drag this pair even lower, we have an major support at the 38,2% retracement level. We have static resistance at 1,6665 and higher at 1,6699, the dynamic is at descending trendline.The price is also below MA 200, this is a bearish signal. At this time we don't have a positive outlook for this week.
We had an interesting day at Bank of England, because two policymakers voted for increasing the interest rate after three years of unanimity. We may have a rate hike in 2014 in the UK, but for now there are only speculations.
EUR/USD: Falling Down
As I said in other analysis on the EUR/USD, this pair is still bearish as long as the price is following the descending channel. We had a distribution till monday, now the price is below the 1,3292 support level. This downward movement will continue , having first targeted at the 38,2% retracement level. The resistance can be found at the channel resistance and at 1,3332 level. Later today we have the FOMC minutes, we have to take a look at this event.
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