26 May 2014
GBP/USD deflates to 1.6830
FXStreet (Edinburgh) - The sterling is following the market mood on Monday, with the GBP/USD trading in a narrow range around 1.6830.
GBP/USD extends the correction
The pair seems to have found decent support near 1.6800 the figure, coming down from last week’s tops above the 1.6900 handle. Looking forward, it will be a light week in terms of data releases in the UK economy: BBA Mortgage Approvals (Tuesday), Nationwide Prices (Wednesday) and the Gfk Consumer Confidence survey (Friday). In the view of Jane Foley, Senior FX Strategist at Rabobank, “The fact that sterling retains its place at the best performing developed world currency over the past 12 months suggests there is a lot of good news priced-in. Long positions and the tendency for the market to allow itself to be carried away suggest that the pound is likely to be subject to bouts of profit-taking in the months ahead”.
GBP/USD levels to consider
As of writing the pair is up 0.03% at 1..6837 with the immediate resistance at 1.6875 (high May 23) ahead of 1.6917 (high May 22) and finally 1.6922 (high May 21). On the flip side, a breakdown of 1.6813(low May 23) would expose 1.6802 (low May 20) and then 1.6784 (low May 16).
GBP/USD extends the correction
The pair seems to have found decent support near 1.6800 the figure, coming down from last week’s tops above the 1.6900 handle. Looking forward, it will be a light week in terms of data releases in the UK economy: BBA Mortgage Approvals (Tuesday), Nationwide Prices (Wednesday) and the Gfk Consumer Confidence survey (Friday). In the view of Jane Foley, Senior FX Strategist at Rabobank, “The fact that sterling retains its place at the best performing developed world currency over the past 12 months suggests there is a lot of good news priced-in. Long positions and the tendency for the market to allow itself to be carried away suggest that the pound is likely to be subject to bouts of profit-taking in the months ahead”.
GBP/USD levels to consider
As of writing the pair is up 0.03% at 1..6837 with the immediate resistance at 1.6875 (high May 23) ahead of 1.6917 (high May 22) and finally 1.6922 (high May 21). On the flip side, a breakdown of 1.6813(low May 23) would expose 1.6802 (low May 20) and then 1.6784 (low May 16).