24 Mar 2014
GBP/USD flirting with 1.6500
FXStreet (Edinburgh) - After dipping to fresh lows near 1.6460, the GBP/USD managed to pick up pace is currently challenging the key barrier at 1.6500.
GBP/USD decoupling from the EUR/USD
The pair is now reverting the initial drop along with its European peer, recovering from a negative start and looking to regain 1.6500 the figure. In the view of Jane Foley, Senior Currency strategist at Rabobank, “the BoE currently looks set to hike rates before the Fed, ECB or the BoJ. For this reason, sterling could attract fresh buying interest in the coming months. While we expect a broad-based USD recovery to push cable lower by year-end, we expect EUR/GBP to push back towards the 0.81. Given that sterling longs have been cleared out in recent weeks, better UK economic data this week could lend the pound decent support”.
GBP/USD levels to watch
The pair is now up 0.04% at 1.6496 with the next resistance at 1.6520 (high Mar.21) ahead of 1.6550 (55-d MA) and finally 1.6570 (high Mar.20). On the downside, a break below 1.6453 (38.2% of 1.5854-1/6823) would open the door to 1.6425 (low Feb.12) and then 1.6392 (low Feb.11).
GBP/USD decoupling from the EUR/USD
The pair is now reverting the initial drop along with its European peer, recovering from a negative start and looking to regain 1.6500 the figure. In the view of Jane Foley, Senior Currency strategist at Rabobank, “the BoE currently looks set to hike rates before the Fed, ECB or the BoJ. For this reason, sterling could attract fresh buying interest in the coming months. While we expect a broad-based USD recovery to push cable lower by year-end, we expect EUR/GBP to push back towards the 0.81. Given that sterling longs have been cleared out in recent weeks, better UK economic data this week could lend the pound decent support”.
GBP/USD levels to watch
The pair is now up 0.04% at 1.6496 with the next resistance at 1.6520 (high Mar.21) ahead of 1.6550 (55-d MA) and finally 1.6570 (high Mar.20). On the downside, a break below 1.6453 (38.2% of 1.5854-1/6823) would open the door to 1.6425 (low Feb.12) and then 1.6392 (low Feb.11).