4 Dec 2013
GBP/USD drops below 1.6370
FXstreet.com (Edinburgh) - The sterling is now losing the grip on Wednesday, taking the GBP/USD to challenge session lows in the 1.6370/65 region.
GBP/USD focus on PMI
The most significant event for the pound today will be the key Services PMI, with market consensus expecting the indicator to ease a tad in November to 62.0 from 62.5. After testing the vicinity of 1.6440 on Tuesday, the pair is now correcting lower amidst a generalized risk-off tone amongst investors, ahead of the BoE MPC meeting due tomorrow and US Payrolls on Friday. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “continues to probe the 1.6370 December 2012 high. This attempt higher was seen in fairly thin market conditions and ONLY a CLOSE above 1.6370 will persuade us that there is scope for a move to 1.6634/1.6735. Currently intraday charts are suggesting we may see an extension to 1.6490/1.6500”.
GBP/USD critical levels
As of writing the pair is retreating 0.09% at 1.6371 and a breach of 1.6347 (low Dec.3) would expose 1.6343 (low Dec.2) and finally 1.6315 (low Nov.29). On the upside, the initial resistance lines up at 1.6437 (high Dec.3) followed by 1.6443 (2013 high Dec.2) and then 1.6455 (high Aug.29 2011).
GBP/USD focus on PMI
The most significant event for the pound today will be the key Services PMI, with market consensus expecting the indicator to ease a tad in November to 62.0 from 62.5. After testing the vicinity of 1.6440 on Tuesday, the pair is now correcting lower amidst a generalized risk-off tone amongst investors, ahead of the BoE MPC meeting due tomorrow and US Payrolls on Friday. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “continues to probe the 1.6370 December 2012 high. This attempt higher was seen in fairly thin market conditions and ONLY a CLOSE above 1.6370 will persuade us that there is scope for a move to 1.6634/1.6735. Currently intraday charts are suggesting we may see an extension to 1.6490/1.6500”.
GBP/USD critical levels
As of writing the pair is retreating 0.09% at 1.6371 and a breach of 1.6347 (low Dec.3) would expose 1.6343 (low Dec.2) and finally 1.6315 (low Nov.29). On the upside, the initial resistance lines up at 1.6437 (high Dec.3) followed by 1.6443 (2013 high Dec.2) and then 1.6455 (high Aug.29 2011).