Tue, 02 Nov 2010 12:53:00 +0100

Forex: GBP/USD loses 1.6000, hits session low at 1.5960

FXstreet.com (Barcelona) - The Pound has broken below the last two days consolidation channel, weighed by weaker than expected UK Construction PMI figures, and retreat from 1.6080 high, has extended through 1.6000 support level to hit session low at 1.5960.

Technical indicators are giving bearish signals, according to Valeria Bednarik, collaborator at FXstreet.com who points out to the 20 SMA on 4-hour charts to contain Pound weakness: "Turning bearish in 4 hours charts, yet still above 20 SMA with a strong bullish slope around 1.5980; the MA usually acts as dynamic support for the pair, so if reached we could expect a bounce higher or at least some consolidation around the level."

On the downside, below 1.5980, the pair could drop to 1.5900/20 says Bednarik: "The reaction around it (15980) will probably define intraday trend as break below should suggest a bearish movement, from 1.5960, to 1.5900/20 price zone."

Technical Analysis (2010-11-02 11:45 GMT)
GBP/USD 1.59905/1.59921 - O: 1.5787 H: 1.5795 L: 1.5776 C: 1.5792
Trend	R3: 1.6074
	R2: 1.6034
	R1: 1.5994
	S1: 1.5911
	S2: 1.5951
	S3: 1.5991