GBP/USD bulls running for cover

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.7074, down -0.22% on the day, having posted a daily high at 1.7146 and low at 1.7070.

With the pressures that were building to the downside in the pair, post the highs in Europe of 1.7143, the heavy liquidation of GBP/USD today has continued with stops triggered and the less committed bulls running for cover. This comes ahead of tomorrows inflation numbers, with CPI expected year on year at 1.6% and month on month 1.7%, both up 0.1% on last. Meanwhile, Jane Foley, Senior Currency Strategist, at Rabobank explained the market is convinced that the BoE will be the next developed world central bank to follow the RBNZ and hike rates. “This week’s comments by BoE Carney will be dissected for any hint as to whether the BoE is bias to a sooner rather than later move”. Jane Foley added, “While the consensus is in favour of a Q1 2015 hike, we expect steady rates until Q2 based on low UK wage growth and soft CPI inflation”.

GBP/USD Levels

Spot is presently trading at 1.7075, and next resistance can be seen at 1.7085 (Daily Classic S1), 1.7091 (Yesterday's Low), 1.7105 (Hourly 20 EMA) and 1.7113 (Weekly Low). Support below can be found at 1.7070 (Daily Low), 1.7065 (Daily 20 SMA), 1.7057 (Daily Classic S2), 1.7038 (Weekly Classic S2) and 1.7023 (Daily Classic S3).

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