5 Nov 2013
GBP/USD firmer towards 1.6060
FXstreet.com (Edinburgh) -The sentiment around the sterling continues to sharpen on Tuesday, with the GBP/USD now flirting with the 1.6060 level post-PMI.
GBP/USD in 3-day highs
The pair found the perfect excuse to rally beyond the critical 1.6000 level in the better-than-expected Services PMI print, exceeding estimates at 62.5 during the last month. In the wake of the release, Analyst James Knightley at ING went further into details, adding “The new business component is at its highest level since the series began in 1996 and taking all of the PMIs together the composite reading is suggesting that 4Q GDP growth could rise as much as 1.5% - equivalent to around 6% annualised growth. It is difficult to believe that any other major economy will come close to that in the fourth quarter so sterling is likely to remain strong, particularly against the euro”.
GBP/USD key levels
At the moment the pair is advancing 0.43% at 1.6045 and a break above 1.6065 (MA10d) would aim for 1.6070 (high Oct.31) and then 1.6079 (high Oct.30). On the downside, the first support aligns at 1.5904 (low Nov.4) followed by 1.5894 (low Oct.16) and finally 1.5869 (low Sep.16).
GBP/USD in 3-day highs
The pair found the perfect excuse to rally beyond the critical 1.6000 level in the better-than-expected Services PMI print, exceeding estimates at 62.5 during the last month. In the wake of the release, Analyst James Knightley at ING went further into details, adding “The new business component is at its highest level since the series began in 1996 and taking all of the PMIs together the composite reading is suggesting that 4Q GDP growth could rise as much as 1.5% - equivalent to around 6% annualised growth. It is difficult to believe that any other major economy will come close to that in the fourth quarter so sterling is likely to remain strong, particularly against the euro”.
GBP/USD key levels
At the moment the pair is advancing 0.43% at 1.6045 and a break above 1.6065 (MA10d) would aim for 1.6070 (high Oct.31) and then 1.6079 (high Oct.30). On the downside, the first support aligns at 1.5904 (low Nov.4) followed by 1.5894 (low Oct.16) and finally 1.5869 (low Sep.16).