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18 Dec 2013
GBP/USD on the rise ahead of the Fed; 1.6317 is ST “correction resistance”
FXstreet.com (Barcelona) - The GBP/USD is bouncing Wednesday after bottoming out just below technicians’ 1.6250 target intraday Tuesday. All the world is waiting on the Fed, but data ahead of FOMC news must be monitored as well.
GBP/USD traders to focus on Fed Wednesday but must watch additional releases
GBP/USD traders will be closely monitoring technical factors and the Fed announcements, but will have plenty of data to react to – including:
• British Employment Data
• Bank of England’s Monetary Policy Meeting Minutes
• US Mortgage Applications
• US Building Permits
• US Housing Starts
• 5 and 7-year Treasury auctions
Technical outlook for GBP/USD
Technicians say that GBP/USD could be setting up for its next leg higher after bottoming out on Tuesday. First resistance comes in at Fibonacci price projection of 1.6317. If a breakout above that level occurs, 1.6338 is the next Fibonacci projection. Initial support comes in at 1.6260 and is backed up by Tuesday’s intraday low of 1.6216.
GBP/USD traders to focus on Fed Wednesday but must watch additional releases
GBP/USD traders will be closely monitoring technical factors and the Fed announcements, but will have plenty of data to react to – including:
• British Employment Data
• Bank of England’s Monetary Policy Meeting Minutes
• US Mortgage Applications
• US Building Permits
• US Housing Starts
• 5 and 7-year Treasury auctions
Technical outlook for GBP/USD
Technicians say that GBP/USD could be setting up for its next leg higher after bottoming out on Tuesday. First resistance comes in at Fibonacci price projection of 1.6317. If a breakout above that level occurs, 1.6338 is the next Fibonacci projection. Initial support comes in at 1.6260 and is backed up by Tuesday’s intraday low of 1.6216.