Forex: GBP/USD breaks yesterday low and tests 1.6100 level

on January 22 2010 7:50 AM

FXstreet.com (Barcelona) - The Sterling has continued with its decline against the Greenback from 1.6260 to break 55 hours moving average at 1.6235 and yesterday low at 1.6125 to trade at lowest levels since Jan 12. Currently the pair is falling 0.50% so far today from opening price action at 1.6195 to the current 1.6105.

IN the big chart, the GBP/USD is completing its third day on row with losses from Jan 19 high at 1.6460. The pair has decline 360 pips in four day to break 200 days moving average at 1.6160. GBP/USD is closing the week in negative field.

Cable is up overnight, as the USD negativity outweighed the poor UK retail sales report. Says T J Marta, Technical analyst at Marta on the Markets, Technical Resistance lies at 1.6458 (Jan19 high),1.6479 (61.8% retracement of Nov to Dec decline), 1.6722 (Dec 3 high), 1.6878 (Nov16 high) and 1.7043 (Aug high). Support lies at 1.6126 (Jan21 low), 1.5833 (Dec30 low) and then 1.5708 (Oct low). The strongest correlates over the past two months for GBP/USD have been the DXY (negative) and EUR/USD (positive). The S&P (positive) is less significant. He concludes.

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