Cable grinded to a halt on approach to 1.66

By FXstreet.com | Updated August 22, 2014 AAA

FXStreet (Moscow) - GBP/USD is hovering in 1.6590 zone, obviously, the bulls are not ready to attack 1.66 handle before Yellen’s speech

Sitting on the fence

GBP/USD is rangebound in Europe. It is but natural as there is nothing to chew on in terms of macroeconomic news, while Janet Yellen’s speech is looming on the horizon as a big risk event. FOMC minutes published earlier this week were regarded as somewhat hawkish, but Yellen might kill hopes for early Fed Funds rate by dovish comments on labour market conditions. She is well known for her attention to this issue as a primary indicator of the amount of slack in the economy. Thus, USD is vulnerable today but the downside may be limited as Yellen’s dovishness is already priced in, at least partially. GBP/USD needs to break a above 1.66 to get a chance for further upside towards 1.6620 and then to 1.6670. On the downside, the support is seen at 1.6563 and followed by 1.6550.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6582, with support below at 1.6566, 1.6544 and 1.6524 with resistance above at 1.6600, 1.6620, and 1.6638. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.6684, and the daily 20EMA bearish at 1.6777. Hourly RSI is bullish at 55.

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