7 May 2014
GBP/USD is at 1.6980 gazing at 1.70
FXStreet (Moscow) - GBP/USD opened the day at 1.6973, and zig zaged 10 pips up and down, still trading close to strong 1.70 resistance area.
What the BOE thinks?
The pair took a pause in 1.6980 area, having great desire to break above 1.70, but no fuel at all. The recent PMI data from manufacturing and services sectors strongly support the market belief that UK growth is accelerating, and there are some investors who start pricing in the possibility of the BOE’s rate change this year. No wonder, we saw an impressive rally yesterday right after services PMI showed the highest reading of this year – this sector makes the largest share of the British economy, and now the monetary tightening is not a wishful thinking, but a possible and quite realistic scenario. The move above 1.70 will be a hard one, but the USD weakness may help the pair refresh August, 2009 highs around 1.7040.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6496, with support below at 1.6894, 1.6813, 1.6761 with resistance above at 1.7027, 1.7079, and 1.7160. Hourly Moving Averages are bullish, with the 200SMA at 1.6860, and the daily 20EMA bullish at 1.6812. Hourly RSI is bullish at 67.
What the BOE thinks?
The pair took a pause in 1.6980 area, having great desire to break above 1.70, but no fuel at all. The recent PMI data from manufacturing and services sectors strongly support the market belief that UK growth is accelerating, and there are some investors who start pricing in the possibility of the BOE’s rate change this year. No wonder, we saw an impressive rally yesterday right after services PMI showed the highest reading of this year – this sector makes the largest share of the British economy, and now the monetary tightening is not a wishful thinking, but a possible and quite realistic scenario. The move above 1.70 will be a hard one, but the USD weakness may help the pair refresh August, 2009 highs around 1.7040.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6496, with support below at 1.6894, 1.6813, 1.6761 with resistance above at 1.7027, 1.7079, and 1.7160. Hourly Moving Averages are bullish, with the 200SMA at 1.6860, and the daily 20EMA bullish at 1.6812. Hourly RSI is bullish at 67.