Currency Analyst since 2010

GBP/USD trades near support

GBP/USD remains just above $1.5920 (support line from July and 23.6% Fibo retracement of this advance). The pair made a big decline yesterday falling from levels above $1.6100 in a natural reaction on the weak data (Industrial Production, Manufacturing Production, Trade Balance and NIESR GDP estimate).

Today the Bank of England is to announce its latest policy decision (11:00 GMT) – no changes to the policy are expected. TD Securities says that the only risk is that this month the BoE decides to start releasing their monthly statements. The specialists point out that there’s a head & shoulders on H4 (target is near $1.5750). Bank of America Merrill Lynch points out that GBP fell below the pivotal 4-year trend line around $1.5980.

Support is at $1.5915/10 (recent lows), $1.5885 and $1.5840. Resistance is at $1.6000, $1.6015 and $1.6120.

Chart. Daily GBP/USD

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