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3 Apr 2013
Forex: GBP/USD breaks into 2-week low; no significant demand until 1.4950/1.50
FXstreet.com (Barcelona) - GBP/USD has penetrated into a fresh 2-week low territory in Asia, after some large orders entering the market unraveled the stagnant 6 pips range between 1.5102/08 to now set the new low at 1.5075.
According to Valeria Bednarik, chief analyst at FXstreet.com: "If stops gathered below 1.5090 get triggered (confirmed), the pair may continue its fall with 1.5010 then at sight."
The above view from Valeria is consistent with the absence of any significant demand until 1.4950 actually, although the 1.50 round number always poses some challenge as a psychological area to enter trades.
For those traders interested in joining the bearish momentum in the Cable, some key supply areas to bear in mind are found at 1.5102/08 mentioned above, although the downside is that is has been produced on a low volume time for the Cable, with additional sequences of supply at 1.5135, 1.5150, 1.5165/70 -all rise-base-drop - and key 1.5185 - drop-base-drop.
According to Valeria Bednarik, chief analyst at FXstreet.com: "If stops gathered below 1.5090 get triggered (confirmed), the pair may continue its fall with 1.5010 then at sight."
The above view from Valeria is consistent with the absence of any significant demand until 1.4950 actually, although the 1.50 round number always poses some challenge as a psychological area to enter trades.
For those traders interested in joining the bearish momentum in the Cable, some key supply areas to bear in mind are found at 1.5102/08 mentioned above, although the downside is that is has been produced on a low volume time for the Cable, with additional sequences of supply at 1.5135, 1.5150, 1.5165/70 -all rise-base-drop - and key 1.5185 - drop-base-drop.