FXstreet.com (Barcelona) - The Sterling has found support at 1.6325 after falling 135 pips against the Greenback on the back of Moody's rating. GBP/USD has bounced at this level to trade close to 1.6380 and now the pair is pricing around 1.6345/55, 0.60% below today's opening price action at 1.6445.
Moody's investors has said that UK and US had resilient AAA ratings due to a harder impact of the financial crisis than other countries like Canada, Germany and France.
According to Abhishek Goenka, analyst at India Forex Advisors, the Sterling is bearish: The GBPUSD made indecisive movement yesterday, formed a Doji on daily chart and slipped below the trendline support and bottomed at 1.6312 but further bearish pressure was rejected as the pair closed much higher at 1.6453 and now back above the trendline support. Shorts can be initiated at 1.6550 levels for target of 200 pips.(GBPUSD - 1.6443) Bearish.
Nicolle Elliott, analyst at Mizuho Corporate bank, suggests small longs at 1.6390: Yesterday's 'spike low' against the bottom of the 'flag' and the top of the Ichimoku 'cloud' balances out Friday's 'spike high'. These are signs of a market looking for direction while carefully balanced at current levels. Good futures volume last week suggests many are closing out positions for this year. Strategy: Attempt small longs at 1.6390; stop below 1.6250. First target 1.6650 then 1.6800.