Friday, October 30, 2009

GBP/USD rebounds sharply at 1.6415 and rises back above 1.6500

Cable tumbled to 1.6415 against the Dollar posting a fresh intra-day low but rebounded sharply and rose back above 1.6500. Currently the pair trades at 1.6502/07, 0.35% below today’s opening price. On the downside support lies at 1.6400 and below at 1.6330/40 (Oct 29 lows). Immediate resistance could be located at 1.6520 and above at 1.6580 (intra-day high).

Andrew Wilkinson, analyst at Interactive Brokers, affirms: “This week the Bank of England completed its £175 billion asset purchase program and next week investors will look for an extension. The pound is not yet discounting that potential as negative, something investors balked at only two weeks ago. Instead sterling is holding up well to the dollar at $1.6514 on Friday after data showed strengthening consumer confidence and the first annual gain for home prices in 19 months.”

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