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Forex pairs in this Article » EUR/USD, GBP/USD - GBP/USD spent the Asian session in gradual depreciation after reaching 1.6463 high overnight; it returned to 1.6417 by the moment.

Do you believe in the full-blown UK recovery?

Recovery mode of GBP/USD can be easily switched off, especially if fundamentals disappoint again. And the current moves of the pair only support our point of view – the Pound has lost about 25 pips from the open, and is now consolidating around 1.6420 area. Today we will get only the speech of the BOE governor, and we are unlikely to see any new developments. Monetary officials convinced the market they were not ready to change the policy direction in the nearest future, since the inflation in the UK is easing, and the economy recovery is not stable. Recent CPI data only supported the sentiment, as the index slowed to November, 2009 low at 2.0 per cent. The barren economic calendar for today may confine GBP/USD to narrow ranges within the neighborhood of 1.6426 central pivot point.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6426, with support below at 1.6385 (S1), 1.6327 (S2) and 1.6286 (S3), with resistance above at 1.6484 (R1), 1.6525 (R2), and 1.6583 (R3). Hourly Moving Averages are bearish, with the 200SMA at 1.6429 and the daily 20EMA flat at 1.6421. Hourly RSI is neutral at 47.
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