GBP/USD bulls take a time out

By FXstreet.com | Updated August 06, 2014 AAA

FXStreet (Moscow) - GBP/USD tried to settle above 1.6880 resistance, but failed to hold ground and retraced lower towards 1.6865 as market is waiting for the key UK data published later today.

GBP bears are in retreat

GBP/USD bottomed out at 1.6818 and started an upside correction. The bullish momentum is rather weak, but it may gain pace ahead of Bank of England monetary policy decision. Though the MPC meeting is going to be a non-event this week, investors might get a reminder that BOE is going to be the first major central bank to raise rates. UK industrial production data might be of interest as investors are expecting growth go 0/6% m/m, 1/5% y/y in July against -0.7% m/m, 2.3% y/y in June. Positive data might support the upside correction from the local bottom. From the technical point of view the key upside level on the intraday basis is 1.6880, once broken, the pair will move towards 1.6900; the downside is likely to be limited by 1/6844 (Tuesday’s low).

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6874, with support below at 1.6857, 1.6829 and 1.6812 with resistance above at 1.6902, 1.6919, and 1.6947. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.6915, and the daily 20EMA bearish at 1.6975. Hourly RSI is bullish at 55.

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