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19 Sep 2013
GBP/USD deepens correction from 8-month highs
FXstreet.com (Córdoba) - The GBP/USD came under pressure and pulled back below 1.6100 after data showed UK retail sales unexpectedly dropped in August.
UK retail sales fell 0.9% in August and rose 2.1% on the year, versus forecast of monthly increase of 0.3% and an annual rise of 3.1%. Weaker-than-expected data weighed on the GBP which deepened its correction against the greenback.
GBP/USD capped by 1.6160
The GBP/USD rallied more than 250 pips Wednesday as the USD slumped across the board after the Federal Reserve refrained from tapering its bond-buying program, against markets’ expectations. However, the Cable stalled at the 1.6160 area and enjoyed some consolidation before correcting lower.
GBP/USD levels to watch
At time of writing, GBP/USD is trading at the 1.6070 zone as the recent setback was contained around 1.6060 (100 pips below yesterday’s peak). As for technical levels, GBP/USD could find immediate supports at 1.6060 (daily low) and 1.6000 (psychological level), while resistances are seen at 1.6160 (Sep 18 high) and 1.6176 (Jan 11 high) ahead of 1.6200 (psychological level).
UK retail sales fell 0.9% in August and rose 2.1% on the year, versus forecast of monthly increase of 0.3% and an annual rise of 3.1%. Weaker-than-expected data weighed on the GBP which deepened its correction against the greenback.
GBP/USD capped by 1.6160
The GBP/USD rallied more than 250 pips Wednesday as the USD slumped across the board after the Federal Reserve refrained from tapering its bond-buying program, against markets’ expectations. However, the Cable stalled at the 1.6160 area and enjoyed some consolidation before correcting lower.
GBP/USD levels to watch
At time of writing, GBP/USD is trading at the 1.6070 zone as the recent setback was contained around 1.6060 (100 pips below yesterday’s peak). As for technical levels, GBP/USD could find immediate supports at 1.6060 (daily low) and 1.6000 (psychological level), while resistances are seen at 1.6160 (Sep 18 high) and 1.6176 (Jan 11 high) ahead of 1.6200 (psychological level).