GBPUSD: Moving sideways near the high of its horizontal range

Monday, October 28, 20130 comments


GBP/USD is moving sideways near the high of its wide horizontal range defined by the support at 1.5886 and the resistance at 1.6260. The short term structure favors a positive bias as long as the hourly support at 1.6116 holds. Another support stands at 1.6060.

Thus far, GBP/USD does not confirm the fresh highs made by EUR/USD.

In the longer term, prices are close to the strong resistance area between 1.6302 (30 April 2012 high) and 1.6381 (see also the long term declining trendlines). Given the increasing overbought conditions, we would be medium term cautious on GBP/USD, as it has already priced in a lot of positive news. 
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