FxWirePro: GBP/USD dips below lower range, bearish bias increases

14 September 2016, 15:23
Eko Rediantoro

  • The GBP/USD pair fell as low as 1.3190 in the early US session after data showed Britains annual consumer price inflation rate for August came below expectations.
  • The annual rate of consumer price inflation was unchanged at 0.6 percent in August, compared with economists’ forecast for it to increase to 0.7 percent on Tuesday.
  • The ongoing weakness is set to continue for this pair as the resistance level at 1.3300 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
  • To the upside, immediate resistance can be seen at 1.3260, a break above this level would expose the cable to next resistance level at 1.3300.
  • To the downside immediate support can be seen at 1.3173, a break below at this level will open the door towards next level at 1.3090.

    Resistance Levels

    R1:  1.3260 (38.2% Retracement level)   

    R2: 1.3300 (Psychological levels)               

    R3: 1.3366 (23.6% Retracement level)

    Support Levels

    S1: 1.3173 (50% Retracement level)                        

    S2: 1.3090 (61.8% Retracement level)

    S3: 1.3022 (Aug 19th lows)

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