20 Jun 2014
GBP/USD tests lows near 1.7030
FXStreet (Edinburgh) - After hitting fresh multi-year highs near just above 1.7060on Friday, the GBP/USD is now retracing ground to the area of 1.7035/30, or session lows.
GBP/USD bolstered by BoE, risk
Recent comments by MPC members and even Governor M.Carney hinting at the likeliness of a sooner than anticipated rate hike continue to prop up the GBP, lifting spot to levels last seen in 2009. The next risk event for GBP traders will be the Financial Stability Report, due on 26th June. “Above 1.7065/75 will trigger a move to the 50% retracement at 1.7331 (of the move down from the 2007 peak). Below 1.6915 would alleviate immediate upside pressure and trigger a sell off to the 7 month support line at 1.6772”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD key levels
The pair is now advancing 0.02% at 1.7043 with the next hurdle at 1.7064 (high Jun.20) followed by 1.7100 (psychological level) and then 1.7105 (low Oct.20 2005). On the downside, a breach of 1.6985 (low Jun.19) would open the door to 1.6920 (low Jun.18) and finally 1.6900 (psychological level).
GBP/USD bolstered by BoE, risk
Recent comments by MPC members and even Governor M.Carney hinting at the likeliness of a sooner than anticipated rate hike continue to prop up the GBP, lifting spot to levels last seen in 2009. The next risk event for GBP traders will be the Financial Stability Report, due on 26th June. “Above 1.7065/75 will trigger a move to the 50% retracement at 1.7331 (of the move down from the 2007 peak). Below 1.6915 would alleviate immediate upside pressure and trigger a sell off to the 7 month support line at 1.6772”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD key levels
The pair is now advancing 0.02% at 1.7043 with the next hurdle at 1.7064 (high Jun.20) followed by 1.7100 (psychological level) and then 1.7105 (low Oct.20 2005). On the downside, a breach of 1.6985 (low Jun.19) would open the door to 1.6920 (low Jun.18) and finally 1.6900 (psychological level).