27 May 2014
GBP/USD traders are disappointed but not for long
FXStreet (Moscow) - GBP/USD plunged from intraday high at 1.6881 to the support level of 1.6846 on the back of disappointing BBA data
The pound inspires
Pound bulls were inspired last week by hints that some members of the BoE’s MPC were gradually becoming less dovish. The pound also was helped by April retail sales that surged 6.9% y/y, showing the strongest annual rise in ten years. It means consumers may become another driver of the British recovery with labor market adding new jobs and showing the increase of wage inflation. On a longer-term scale it only fuels the belief the economy may get to pre-crisis levels already in the second quarter. Though on the intraday basis weaker than expected BBA Mortgage Approvals may become a drag for the British currency. The numbers came out at 42,173 April against 45,045 in March. Investors may be disappointed, but we do not expect that the bearish movement will get the pair below 1.6840 level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6841, with support below at 1.6827, 1.6813, and 1.6799 with resistance above at 1.6855, 1.6869, and 1.6883. Hourly Moving Averages are mixed, with the 200SMA at 1.6831, and the daily 20EMA flat at 1.6837. Hourly RSI is bearish at 69.
The pound inspires
Pound bulls were inspired last week by hints that some members of the BoE’s MPC were gradually becoming less dovish. The pound also was helped by April retail sales that surged 6.9% y/y, showing the strongest annual rise in ten years. It means consumers may become another driver of the British recovery with labor market adding new jobs and showing the increase of wage inflation. On a longer-term scale it only fuels the belief the economy may get to pre-crisis levels already in the second quarter. Though on the intraday basis weaker than expected BBA Mortgage Approvals may become a drag for the British currency. The numbers came out at 42,173 April against 45,045 in March. Investors may be disappointed, but we do not expect that the bearish movement will get the pair below 1.6840 level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6841, with support below at 1.6827, 1.6813, and 1.6799 with resistance above at 1.6855, 1.6869, and 1.6883. Hourly Moving Averages are mixed, with the 200SMA at 1.6831, and the daily 20EMA flat at 1.6837. Hourly RSI is bearish at 69.