7 May 2014
GBP/USD deflates to 1.6960
FXStreet (Edinburgh) - The sterling is grinding lower on Wednesday, dragging the GBP/USD to test session lows in the 1.6965/60 region.
GBP/USD correcting from peaks
Spot continues to correct from Tuesday’s multi-year peaks in levels just shy of 1.7000 the figure following the risk-off mood in the global markets. Next of note in the UK economy will be tomorrow’s BoE MPC meeting, with market consensus expecting the central bank to keep its ‘on-hold’ stance. However, as the unemployment rate is now below 7%, market participants will closely follow the statement or announces (if any) in such regard. “While we remain above the 1.6775/1.6825 zone the risk opens up for tests on the next resistance levels located at 1.6960/80 initially, followed by 1.7150 and final extension target comes in around the 1.73 area”, noted Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
At the moment the pair is losing 0.04% at 1.6966 with the immediate support at 1.6900 (psychological level) ahead of 1.6870 (10-d MA) and then 1.6866 (low May 7). On the upside, a breakout of 1.6997 (2014 high May 6) would aim for 1.700 (psychological level) and finally 1.7044 (high Aug.5 2009).
GBP/USD correcting from peaks
Spot continues to correct from Tuesday’s multi-year peaks in levels just shy of 1.7000 the figure following the risk-off mood in the global markets. Next of note in the UK economy will be tomorrow’s BoE MPC meeting, with market consensus expecting the central bank to keep its ‘on-hold’ stance. However, as the unemployment rate is now below 7%, market participants will closely follow the statement or announces (if any) in such regard. “While we remain above the 1.6775/1.6825 zone the risk opens up for tests on the next resistance levels located at 1.6960/80 initially, followed by 1.7150 and final extension target comes in around the 1.73 area”, noted Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
At the moment the pair is losing 0.04% at 1.6966 with the immediate support at 1.6900 (psychological level) ahead of 1.6870 (10-d MA) and then 1.6866 (low May 7). On the upside, a breakout of 1.6997 (2014 high May 6) would aim for 1.700 (psychological level) and finally 1.7044 (high Aug.5 2009).