GBP/USD backs away from multi-year highs

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - After hitting a fresh multi-year high, the GBP/USD turned lower and retraced intraday gains amid profit taking and low interest given the US holiday.



The GBP/USD bounced sharply from post-NFP lows and stretched to yet another cycle high of 1.7178 during the European session, but lacked follow-through and pulled back most recently. At time of writing, the Cable is trading at 1.7143, virtually unchanged on the day.



GBP/USD remains supported by BoE/Fed timing



Unlike the euro, the pound managed to quickly recover after strong US employment figures boosted the greenback. Regardless nonfarm payrolls, markets still believe the BoE will hike rates before the Fed, and thats one of the main reasons the GBP/USD trades at multi-year highs.



GBP/USD supports & resistances



In terms of technical levels, the GBP/USD could find immediate supports at 1.7095 (Jul 3 & 1 lows), 1.7030 (10-day SMA) and 1.7007 (Jun 30 low). On the flip side, resistances are seen at 1.7178 (Jul 4 high), 1.7196/1.7200 (Oct 21 2008 high/psychological level) and then 1.7300 (psychological level).



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