Forex: GBP/USD rejects 1.6023 and falls below 1.5980

By IBTimes Staff Reporter | October 01 2009 2:57 AM

FXstreet.com (Barcelona) - The Pound's rally against the Dollar has been capped at 1.6023, intra-day high, and pair has been rejected to levels below 1.5900 to break MA55 hourly chart at 1.5980 and trade close to 1.5970. Currently the pair is trading 0.20% below today's opening price action to the current 1.5970/80.

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On the downside, support levels lie at 1.5925 (intra-day low/Sept 25 low), and below there 1.5880 and 1.5800 (Jun 8 low). Resistance levels lie at 1.6010/20 , 1.6200 and 1.6350.

The ecPulse.com analysis team comments: The GBP/USD is being traded at 1.5998, between the support of 1.5955 and a resistance of 1.6024, while recording a high of 1.6010 and a low of 1.5923. The volumes indicator on the four-hour chart is showing us that there is high volume in markets.

On the other hand, The Swiss e Trade Strategy Team affirms that sell of of EUR/GBP has supported Sterling: Cable is currently trading at 1.6002, near the 1.6015 resistance level, as a sell-off of EUR / GBP helped support Sterling. If the 1.6015 resistance is broken, we expect a rally to 1.6125 will be possible. If resistance holds, then disappointed traders will take this pair back down to 1.5900 and perhaps to 1.5850.

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