Forex Analysis : GBP/USD
It’s all eyes on 1.6000 again, with a break-down here the confirmation needed if Sterling is to turn a tad bearish.
• Initial price resistance for GBP is seen at 1.6150, from where there is little price resistance for a good 100-120 pips – to the 16270 level.
• If first resistance at 1.6150 holds firm though, there will be a very good chance that 1.6000 or just below will be hit again, but we need a daily close and preferably two below last week’s low of 1.5936 to break the trend and open up Cable to a more serious correction.
• With help from the dying US Dollar we think the odds are mildly in favour of some upside for GBP early in the week, albeit not the top pick for the days ahead.