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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Moscow) - Although GBP/USD lost some ground in early Asia, it reversed the move on GBP/JPY strengthening, trading at 1.6409 at the moment.

Pound is bound for looses

Yen crosses indeed revived the GBP/USD rally, though the potential to go higher is rather limited. Today UK releases some data on housing as well as BOE credit conditions survey. We don’t expect much volatility on these events, as the market most probably focuses its attention on American session when ADP report and FOMC minutes are released. The former is important as a leading indicator for Friday’s NFP release, and the latter – as the reflection of central bankers’ sentiment. Both events are potentially USD-positive, thus, we expect the pair to move lower. As the pair is trading around daily pivot point 1.6406 at the moment, the next target may be on 1.6373 support level.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6406, with support below at 1.6373 (S1), 1.6340 (S2) and 1.6307 (S3), with resistance above at 1.6439 (R1), 1.6472 (R2), and 1.6505 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 1.6470 and the daily 20EMA flat at 1.6402. Hourly RSI is neutral at 47.
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