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Forex pairs in this Article » GBP/USD (Edinburgh) - The sterling is now gathering pace, pushing the GBP/USD closer to the 1.6600 handle on Wednesday.

GBP/USD vigilant on Carney, FOMC

The pair could come under pressure today, as Governor Carney will give a speech in Scotland (recall last week’s GBP pullback after Carney strengthened the BoE’s forward guidance) ahead of the FOMC meeting in the European evening, where the recent USD rally could find further legs in a case of extra QE taper. “Based on 2-year swap spreads between the UK and the euro-zone, there remain compelling reasons for the pound to gain further versus the euro”, noted Derek Halpenny, European Head of Global Markets Research at BTMU. In another direction, earlier UK data showed home prices tracked by Nationwide gained 0.7% on a monthly basis and 8.8% YoY during January.

GBP/USD levels to follow

The pair is now advancing 0.10% at 1.6600 facing the next resistance at 1.6627 (high Jan.28) ahead of 1.6667 (2014 high Jan.24) and finally the psychological mark at 1.6700. On the downside, a breach of 1.6571 (low Jan.28) would aim for 1.6500 (psychological level) and then 1.6471 (low Jan.27).
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