$GBPUSD closed higher due to short covering on Friday as it consolidated some of the decline off September's high. The high-range close sets the stage for a steady to higher opening when Monday's night session begins trading.
Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If December extends the aforementioned decline, the 38% retracement level of the June-September rally crossing at 1.5933 is the next downside target. Closes above the 20-day moving average crossing at 1.6144 would confirm that a short-term low has been posted.
First resistance is the 10-day moving average crossing at 1.6079.
Second resistance is the 20-day moving average crossing at 1.6144.
First support is Wednesday's low crossing at 1.5972. Second support is
the 38% retracement level of the June-September rally crossing at 1.5933.
the 38% retracement level of the June-September rally crossing at 1.5933.
