2 Sep 2013
GBP/USD keeps bid around 1.5580
FXstreet.com (Edinburgh) -The pound remains well bid in the upper band of today’s range, with the GBP/USD hovering over 1.5580/90.
GBP/USD firmer ahead of BoE
The pair recovered almost the whole last week’s pullback, when spiralling risk aversion stemming from Middle East tensions dragged the GBP from the area of 1.5610 to the vicinity of 1.5420. In light of the BoE monthly gathering on Thursday, Mansoor Mohi-uddin, Director of FX Strategy at UBS, commented, “The central bank is likely to keep interest rates at 0.50% and its £375bn Asset Purchase Programme unchanged as UK activity data improves and inflation stays above its 2% target. Instead the BoE is aiming to keep monetary conditions loose through its new forward guidance… If the BoE does stick to its dovish script while the Fed starts to slow down its bond buying, Cable is likely to fall into a lower 1.40-1.50 range”.
GBP/USD key levels
At the moment the pair is up 0.29% at 1.5579 and a break above 1.5612 (high Aug.26) would open the door to 1.5638 (high Aug.23) and finally 1.5718 (high Aug.21). On the downside, the initial support aligns at 1.5507 (low Sep.2) followed by 1.5462 (low Aug.30) and then 1.5434 (rising channel base).
GBP/USD firmer ahead of BoE
The pair recovered almost the whole last week’s pullback, when spiralling risk aversion stemming from Middle East tensions dragged the GBP from the area of 1.5610 to the vicinity of 1.5420. In light of the BoE monthly gathering on Thursday, Mansoor Mohi-uddin, Director of FX Strategy at UBS, commented, “The central bank is likely to keep interest rates at 0.50% and its £375bn Asset Purchase Programme unchanged as UK activity data improves and inflation stays above its 2% target. Instead the BoE is aiming to keep monetary conditions loose through its new forward guidance… If the BoE does stick to its dovish script while the Fed starts to slow down its bond buying, Cable is likely to fall into a lower 1.40-1.50 range”.
GBP/USD key levels
At the moment the pair is up 0.29% at 1.5579 and a break above 1.5612 (high Aug.26) would open the door to 1.5638 (high Aug.23) and finally 1.5718 (high Aug.21). On the downside, the initial support aligns at 1.5507 (low Sep.2) followed by 1.5462 (low Aug.30) and then 1.5434 (rising channel base).