29 Oct 2013
GBP/USD selling off hard, 1.6070 lowest of the day
FXstreet.com (Barcelona) - GBP/USD is unusually heavy along Asian hours, selling off over 60 pips in the last hour.
From a daily perspective, a 9 wave count off 1.4780 in early July appears to have completed around 1.6240, with the failure to break above it on its second attempt suggesting that a change in trend structure might be in place, potentially exposing 1.60/1.5950 major swing low in the days/weeks ahead.
As Valeria Bednarik, Chief Analyst at FXstreet.com, notes: "The GBP/USD was pressured by BOE's Miles words, stating that it would be "pretty catastrophic" to raise rates before unemployment in the UK is down by a meaningful amount."
Technically, Bednarik sees "the 4 hours chart readings maintaining a bearish tone, and only a clear recovery above mentioned resistance should give some further release to the pair. A break below mentioned 1.6120 on the other hand, should see the pair extending the slide, with 1.5970 as next big support to watch", she said.
From a daily perspective, a 9 wave count off 1.4780 in early July appears to have completed around 1.6240, with the failure to break above it on its second attempt suggesting that a change in trend structure might be in place, potentially exposing 1.60/1.5950 major swing low in the days/weeks ahead.
As Valeria Bednarik, Chief Analyst at FXstreet.com, notes: "The GBP/USD was pressured by BOE's Miles words, stating that it would be "pretty catastrophic" to raise rates before unemployment in the UK is down by a meaningful amount."
Technically, Bednarik sees "the 4 hours chart readings maintaining a bearish tone, and only a clear recovery above mentioned resistance should give some further release to the pair. A break below mentioned 1.6120 on the other hand, should see the pair extending the slide, with 1.5970 as next big support to watch", she said.