Bears Control the Sterling

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Bears Control the Sterling

The British Pound has been under the control of bears for the past week or so, as it closed below the critical support level of 1.6660 and is currently trading at 1.6483 in the US session on Monday. The pair remained in range on Friday and today as well, as it couldn’t find a clear direction since there was no fundamentals due today for the GBP.

The GBP/USD has several resistance levels clustered above its current price level, where breaking of 1.6506 could lead it to test 1.6528 and 1.6536, but the pair would provide a good opportunity for the traders to short it as long as it trades below the major resistance level of 1.6595.

Investors are looking ahead to the economic indicators that are to be released tomorrow including the inflation numbers and the BBA mortgage approvals, where PPI input would also affect the price of the pair.

Euro Fundamentals Disappoint

The Euro is also under pressure against the greenback since Thursday where it has made a zig-zag movement and is currently trading at 1.3776 on Monday, where it lost nearly 50 points today since the manufacturing and services PMI of the largest economy of Europe – Germany – failed to meet the expected figures in the past month.

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The Eur/Usd has its resistance levels at 1.3795, 1.3810 and 1.3840 where each bounce in the pair’s price would be a good opportunity for the sellers to short the pair at the top. Traders have set pending sell orders at the 1.3870 level as well, which is its major resistance level, so feel free to short the pair if the pair does not move and sustain above this critical level.

Aussie’s Strong

The Australian dollar has been gaining against the USD since Thursday as it has gained more than 130 points since then, where it is trading at 0.9121 here on Monday. There is no such important economic indicator to be released this week for the Australian dollar, so the bulls are expected to remain intact with the pair where breaking of resistance level of 0.9134 could lead it to test 0.9150 and 0.9167.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com