4 Sep 2013
GBP/USD testing highs ahead of PMI
FXstreet.com (Edinburgh) -The sterling is consolidating its current upside, now lifting the GBP/USD to a new test of intraday peaks around 1.5580.
GBP/USD bolstered by data
Next on tap in the UK economy will be the more relevant result from the Services PMI, with market consensus expecting a reading of 59.0 during August, a tad lower than July’s 60.2. Despite the small revision lower, the generalized upbeat tone in the sterling has been propped up by the incipient recovery of the British economy and the less dovish BoE, helping to lift the pair from last week’s lows around 1.5420. In light of the next BoE meeting, analysts at RBS assessed, “The focus this week will be Thursday’s BoE rate decision. With a change in policy settings highly unlikely this month… Given that the August Minutes suggest the MPC have different views on policy, we believe it will be hard to get a consensus supporting an overtly dovish tone”.
GBP/USD levels to watch
The pair us now up 0.11% at 1.5576 facing the next hurdle at 1.5605 (high Sep.3) followed by 1.5612 (high Aug.26) and finally 1.5638 (high Aug.23). On the flip side, a breakdown of 1.5556 (low Sep.4) would open the door to 1.5548 (MA10d) and then 1.5522 (low Sep.3).
GBP/USD bolstered by data
Next on tap in the UK economy will be the more relevant result from the Services PMI, with market consensus expecting a reading of 59.0 during August, a tad lower than July’s 60.2. Despite the small revision lower, the generalized upbeat tone in the sterling has been propped up by the incipient recovery of the British economy and the less dovish BoE, helping to lift the pair from last week’s lows around 1.5420. In light of the next BoE meeting, analysts at RBS assessed, “The focus this week will be Thursday’s BoE rate decision. With a change in policy settings highly unlikely this month… Given that the August Minutes suggest the MPC have different views on policy, we believe it will be hard to get a consensus supporting an overtly dovish tone”.
GBP/USD levels to watch
The pair us now up 0.11% at 1.5576 facing the next hurdle at 1.5605 (high Sep.3) followed by 1.5612 (high Aug.26) and finally 1.5638 (high Aug.23). On the flip side, a breakdown of 1.5556 (low Sep.4) would open the door to 1.5548 (MA10d) and then 1.5522 (low Sep.3).