GBP/USD (intraday): Downside prevails
FX traders saw the sterling take nearly a 115 pip hammering against the US dollar yesterday. The cable initially rose against the greenback on Thursday only to fail at the 1.62 resistance area. It appears there is a bit of a bear market squeeze at the moment and the pair is currently hovering around the 1.6051 area. The negative line capping RSI on the 30 min chart suggests that the intraday trend remains firmly in a negative stance with any upside likely to be limited to very short term. As long as resistance at 1.609 remains intact, we could see some choppy price action with a bearish bias exposing the 1.602 and 1.5995 support levels. On the economic front the focus remains on the US economic calendar with September’s Existing Home Sales expected to point to a narrow pullback, after sales hit a 27-month high in the prior month.
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