21 Jul 2014
GBP/USD contained on the downside
FXStreet (Guatemala) - GBP/USD is trading at 1.7067, down -0.11% on the day, having posted a daily high at 1.7101 and low at 1.7056.
GBP/USD is trending lower despite the efforts on the bid from 1.7035. Risk now remains with the the BoE minutes (Wed) followed by GDP on Friday, expected to rise 3.1%y/y. Meanwhile, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank see’s the risk is as a vaguely hawkish set of minutes and an encouraging GDP print, which will pull forward the expectations for a BoE interest rate hike. “Currently the OIS market is pricing in one full interest rate hike and a 65% chance of a second within the next year."
GBP/USD Levels
With spot trading at 1.7065, we can see next resistance ahead at 1.7077 (Hourly 20 EMA), and 1.7088 (Daily Open). Support below can be found at 1.7056 (Daily Low), 1.7042 (Daily Classic S1), 1.7036 (Yesterday's Low), 1.7017 (Weekly Classic S1) and 1.6998 (Daily Classic S2).
GBP/USD is trending lower despite the efforts on the bid from 1.7035. Risk now remains with the the BoE minutes (Wed) followed by GDP on Friday, expected to rise 3.1%y/y. Meanwhile, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank see’s the risk is as a vaguely hawkish set of minutes and an encouraging GDP print, which will pull forward the expectations for a BoE interest rate hike. “Currently the OIS market is pricing in one full interest rate hike and a 65% chance of a second within the next year."
GBP/USD Levels
With spot trading at 1.7065, we can see next resistance ahead at 1.7077 (Hourly 20 EMA), and 1.7088 (Daily Open). Support below can be found at 1.7056 (Daily Low), 1.7042 (Daily Classic S1), 1.7036 (Yesterday's Low), 1.7017 (Weekly Classic S1) and 1.6998 (Daily Classic S2).