GBP/USD - GBP/USD remains close to 1.6380 - 09/30/2014 (GMT)

• GBP/USD declined on Monday but remained slightly below the support-turned-into-resistance line of 1.6280 (R1). The dip below that barrier confirmed that the 9th -19th of September up move was just a 38.2% retracement level of the 15th of July – 9th of September decline, and could trigger extensions towards our support line of 1.6160 (S1). However, looking at our momentum studies, the RSI remains below its 50 line but is pointing up, while the MACD seems ready to cross above its trigger line. This indicates that the downtrend is running out of momentum and increases the possibilities that the rate may attempt another bounce.
• Support: 1.6160 (S1), 1.6070 (S2), 1.6000 (S3)
• Resistance: 1.6280 (R1), 1.6400 (R2), 1.6500 (R3)