GBP/USD Stabilizing After Sharp Losses; Key Level 1.6501
November 27, 2009 - 9:37 am by Juan P. Bejarano · 3 Comments
The pair declined sharply on risk aversion flows as the Dollar and Yen gained across the board. Investors concerns over Dubai’s debt payments prompted a flight into safe haven assets away from currencies such as the Sterling, Euro, Aussie and Kiwi.
Dubai has liabilities in excess of $59 billion and will ask all creditors for a standstill arrangement as it tries to negotiate an extension of maturities. This intensified concern over global banks’ exposure to Dubai’s debt.
Ahead, traders will look at U.S. markets as well as drive through traffic in U.S. stores as today is Black Friday, the biggest retail sales day in the year.
GBP/USD, traded at a 1.6731 high, before declining over 450 points to a 1.6272 low.
Although an extended decline from current levels, 1.6376, is possible, further upside is still viable to the 50.0% Fib before renewed selling pressure emerges.
However, GBP/USD has already regained ground to the 38.2% Fib retracement of the move from 1.6731 to 1.6272 and has declined over 60 points from the respective level.
With downward pressure, the pair finds initial support from current levels at 1.6264.
Following this level, GBP/USD will encounter support at 1.6133 and 1.6053.
From current levels 1.6376, the pair finds resistance at 1.6448, followed by 1.6501 and the 1.6554.
TREND
Near Term: Bearish
Medium Term: Neutral
Long Term: Bullish
Trading levels in play:
Traders can look to sell on rallies to the 1.6501 and 1.6554 areas as new sellers may emerge. However, there are no solid trade recommendations at the moment for intraday moves.
DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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Hi
This article saved me from some pips. I almost sell down at 1.64..lol but instead sold at 1.65 and made a few pips… anyways… will the whole community from before be back or has it been taken off completely?
Hi Paul,
That’s great that it helped you on your trading.
As far as the previous community, it has been taken off for now. We have decided to make the site and homepage more of the community by letting traders make comments and questions in the posts. We will soon have new features that will let members talk live in the site so that we can all share trades as well.
Have a good weekend!
sounds good… Hopefully you add the feature to talk with other members live as I had some nice conversations with another member (and live would be best). But I do understand the change and it could be for the best.
cheers and hope for a profitable upcoming week!