Filed Under:
Forex pairs in this Article » GBP/USD
FXstreet.com (Edinburgh) -The sterling remains in 2-week highs vs. the greenback on Thursday, lifting the GBP/USD to the area of 1.6160/70.

GBP/USD bolstered by UK data, US deal

The bullish momentum in the pair obeys to the increasing weakness around the USD, stemming from the upbeat tone amongst risk-associated assets after the US clinched a deal to raise the debt ceiling and re-open the federal government paralysis until the first quarter of 2014, and after the Chinese agency Dagong cut the US credit rating to A- from A with negative outlook. On top of that, the domestic calendar showed UK retail sales expanding above estimates during September, adding buying pressure to the GBP side of the equation and joining the positive results from the labour market. Analysts at BBH assessed, “ The data has helped GBP outperform on the day… Separately, a survey conducted by Markit Economics found that the number of households expecting the BOE to raise interest rates within the next two years has risen to 69% from 55% in August… This suggests that the general public is beginning to challenge Carney’s forward guidance, much like many market participants”.

GBP/USD critical levels

As of writing the pair is up 1.32% at 1.6164 with the next resistance at 1.6179 (high Oct.4). On the downside, a breach of 1.5915 (low Oct.15) would aim for 1.5914 (low Oct.10) and finally 1.5893 (low Sep.18).
comments powered by Disqus