GBP/USD – Receives Solid Support at 1.66

GBP/USD – Receives Solid Support at 1.66

From marketpulse.com

Over the last week or so the GBP/USD has received solid support from the key 1.66 level after it retraced strongly from the resistance level at 1.68. In early February, the pound enjoyed a very healthy time moving well from the support level at 1.6250 through 1.6450 before pushing on to the multi-year high above 1.680. In late January the pound fell sharply and experienced its worst one week fall this year which resulted in it moving to the six week low near the support level at 1.6250. Over the last few months the pound has established and traded within a trading range roughly around the key level of 1.6450, whilst ... (full story)

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Feb 26, 2014 9:13pm — Edited

This is bull shit analysis by marketpulse.com.

The facts are the volumes that have supported (so far) in the 1.6600 area are much less than the volumes that have resisted in the 1.6700 area. All that is happening right now is the shifting from longs to shorts by Big Money and the Market Makers, who are keeping the price ranging whilst the process is underway.

The "solid support" is due to the fact that they dare not let the price drop precipitously yet, until short positions are achieved, because if they do, then longs will not flock in to give them the liquidity they need for their short building.

As for the resistance area extending up from 1.6700, great volumes come in when price gets there, which is the result of everybody and their uncle shorting the hell out of it, sopping up every last ounce of liquidity there is for shorting, provided by misguided longs.