GBP/USD forex technical analysis round-up: Oct. 7

NEW YORK (Forex News Now) – As of around 5:40 P.M. GMT on Thursday, sterling was retreating from an 8-month high versus the dollar, after falling below the 1.6 mark in New York afternoon currency market trading.

This is what the analysts say about the heavily traded currency pair in the near-term:

Before sterling pulled back, but mindful of the downside risks, Forexcycle noted that GBP/USD support is at the lower border of the price channel, then at 1.5775.

The realtime forex news site said, “Key support is at 1.5669, only fall below this level will indicate that the uptrend from 1.5296 has completed, then another fall towards 1.5296 previous low could be seen to follow.”

FXstreet, meanwhile, noted that the 4-hour shows “signs of exhaustion” for cable. In the site’s GBP USD analysis, the site puts near-term resistance, in the event of cable returning to extend its gains, at 1.606.

Meanwhile, in a useful earlier report for technical analysis trading, written at the height of sterling’s rally against the dollar, Actionforex points out that the break of cable’s resistance at 1.5997 suggests that whole rise from 1.4230 has resumed.

But the site goes on to warn that, “On the downside, break of 1.5832 support is need to be the first sign of topping and will turn focus to 1.5668 for confirmation.”