24 Apr 2014
GBP/USD toying with 1.6800
FXStreet (Edinburgh) - After dipping to sub-1.6770 levels, the GBP/USD gathered pace and is now creeping back to the boundaries of 1.6800 the figure.
GBP/USD back to session highs
The pound is now challenging intraday peaks around the 1.6800 handle amidst a better tone in the risk-associated assets. Spot is recovering some ground lost after Wednesday’s deep sell-off, looking to regain recent highs in the mid-1.6800s. The next risk event for the sterling will be tomorrow’s UK retail sales, with the headline print expected to contract 0.4% in March. “The resistant at 1.6838/43 is turning out to be stronger than expected and unless there is a move above this level soon, the weakening upward momentum suggests an increasing risk that GBP is close to making an interim top. In other words, a break below the key support at 1.6720 would indicate that the recent high at 1.6843 is the extent of the current bullish phase and a deep pullback can be expected in the days ahead”, commented Quek Ser Leang at UOB Group.
GBP/USD levels to watch
At the moment the pair is up 0.10% at 1.6798 with the next resistance at 1.6836 (high Apr.23) ahead of 1.6842 (2014 high Apr.23) and then 1.6845 (high Nov.18 2009). On the downside, a break below 1.6762 (low Apr.23) would expose 1.6721 (low Apr.16) and finally 1.6716 (21-d MA).
GBP/USD back to session highs
The pound is now challenging intraday peaks around the 1.6800 handle amidst a better tone in the risk-associated assets. Spot is recovering some ground lost after Wednesday’s deep sell-off, looking to regain recent highs in the mid-1.6800s. The next risk event for the sterling will be tomorrow’s UK retail sales, with the headline print expected to contract 0.4% in March. “The resistant at 1.6838/43 is turning out to be stronger than expected and unless there is a move above this level soon, the weakening upward momentum suggests an increasing risk that GBP is close to making an interim top. In other words, a break below the key support at 1.6720 would indicate that the recent high at 1.6843 is the extent of the current bullish phase and a deep pullback can be expected in the days ahead”, commented Quek Ser Leang at UOB Group.
GBP/USD levels to watch
At the moment the pair is up 0.10% at 1.6798 with the next resistance at 1.6836 (high Apr.23) ahead of 1.6842 (2014 high Apr.23) and then 1.6845 (high Nov.18 2009). On the downside, a break below 1.6762 (low Apr.23) would expose 1.6721 (low Apr.16) and finally 1.6716 (21-d MA).