2 Dec 2013
GBP/USD remains sub-1.6400
FXstreet.com (Edinburgh) - The sterling is now looking to stabilize below the 1.6400 handle on Monday, taking the GBP/USD around 1.6380/85.
GBP/USD buoyed by data, eyes on BoE
After hitting 2013 highs in the boundaries of 1.6440 overnight, the pair sparked a correction lower to current levels below 1.6400 the figure, despite the solid reading from the manufacturing PMI in the British economy, surpassing estimates at 58.4 in November. In the opinion of Paul Robson, Senior FX Strategist at RBS, “As we put on last week’s daily charts, this break suggests that 1.73 is a potential target for next year (with 1.6750 resistance on the way). Pullbacks lower should find support around 1.6225/50 initially, below which 1.60 should offer some support and only below 1.58 on a weekly or monthly close would the 1.73 target for next year get negated”.
GBP/USD key levels
At the moment the pair is up 0.07% at 1.6380 and a break above 1.6443 (2013 high Dec.2) would bring 1.6455 (high Aug.29 2011) and then 1.6500 (psychological level). On the downside, a break below 1.6315 (low Nov.29) would expose 1.6277 (low Nov.28) and finally 1.6212 (MA10d).
GBP/USD buoyed by data, eyes on BoE
After hitting 2013 highs in the boundaries of 1.6440 overnight, the pair sparked a correction lower to current levels below 1.6400 the figure, despite the solid reading from the manufacturing PMI in the British economy, surpassing estimates at 58.4 in November. In the opinion of Paul Robson, Senior FX Strategist at RBS, “As we put on last week’s daily charts, this break suggests that 1.73 is a potential target for next year (with 1.6750 resistance on the way). Pullbacks lower should find support around 1.6225/50 initially, below which 1.60 should offer some support and only below 1.58 on a weekly or monthly close would the 1.73 target for next year get negated”.
GBP/USD key levels
At the moment the pair is up 0.07% at 1.6380 and a break above 1.6443 (2013 high Dec.2) would bring 1.6455 (high Aug.29 2011) and then 1.6500 (psychological level). On the downside, a break below 1.6315 (low Nov.29) would expose 1.6277 (low Nov.28) and finally 1.6212 (MA10d).