{"id":62747,"date":"2014-10-29T10:08:37","date_gmt":"2014-10-29T14:08:37","guid":{"rendered":"http:\/\/countingpips.com\/?p=62747"},"modified":"2014-10-29T10:10:23","modified_gmt":"2014-10-29T14:10:23","slug":"sterling-pound-suffers-losses-on-housing-market-worries","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/10\/sterling-pound-suffers-losses-on-housing-market-worries\/","title":{"rendered":"Sterling Pound Suffers Losses On Housing Market Worries"},"content":{"rendered":"<div id=\"inves-439811069\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 29, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <strong>Bearish<\/strong><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>Mortgage Approvals in U.K. decreased to 61K in September;<\/li>\n<li>Sterling Pound traded lower across the board on housing market worries;<\/li>\n<li>GBP\/AUD breaks major triangle formation and 200-Day SMA;<\/li>\n<li>Below 1.8108, traders will target 1.8000 followed by 1.7943 and 1.7820.<\/li>\n<\/ul>\n<p><em>While some traders are patiently waiting for FOMC Statement, with a narrow focus on greenback, Sterling Pound sellers are cashing in on a major sell-off that could extend for several more days.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p>Following September\u2019s major bullish rally, GBP\/AUD managed to correct 38.2% during the first half of October. After overbought conditions were shed, volatility and daily ranges decreased at a steady pace in recent weeks. Price action, however, continued to respect a steady a strong configuration of Lower Highs while sellers were unable to stabilize price below the 200-Day Simple Moving Average. This resulted in a large triangle chart pattern.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/10\/GBPAUD29thOctober.png\" alt=\"GBPAUD29thOctober\" \/><\/p>\n<p>Today\u2019s sell-off has successfully confirmed Tuesday\u2019s initial triangle break, causing GBP\/AUD to sell-off dramatically down to 15<sup>th<\/sup> October Low at 1.8108. Despite Stochastic showing oversold conditions on 4H timeframe and 38.2% Fibonacci level strengthening October\u2019s main support level, both suggesting a temporary breather might be needed, a bearish continuation is the most likely scenario in the coming days and weeks. On a break below 1.8108, traders will immediately target 1.8000\/30, where a support trendline from a bearish channel might slow this descent. Even lower, 1.7943 and 1.7820 should represent viable targets for the first half of November.<\/p><div id=\"inves-3600670010\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Resistance levels are pretty far away at this point, allowing GBP\/AUD to move freely without invalidating the downtrend. 1.8240\/50 should turn into resistance on a re-test from below; while 1.8300\/20 represent a huge cluster of moving averages on 4H. Lacking a huge price action signal off 1.8108, traders will remain bearish on this pair while it trades below these resistance levels. Selling rallies is preferred during these market conditions, as well as selling breaks below support levels.<\/p>\n<p>*********<br \/>\nPrepared by Alex, Currency Strategist at <a href=\"http:\/\/www.capitaltrustmarkets.com\">Capital Trust Markets<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Bearish Key Takeaways Mortgage Approvals in U.K. decreased to 61K in September; Sterling Pound traded lower across the board on housing market worries; GBP\/AUD breaks major triangle formation and 200-Day SMA; Below 1.8108, traders will target 1.8000 followed by 1.7943 and 1.7820. While some traders are patiently waiting for FOMC Statement, with a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-62747","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/62747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=62747"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/62747\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=62747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=62747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=62747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}