FXStreet (Edinburgh) - The sterling continues to meander in a 30-pip range vs. the greenback on Friday, relegating the GBP/USD to the 1.7120-1.7150 band.
GBP/USD closing the week in red figures
Spot is posting its first weekly pullback after five consecutive advances, climbing from the 1.6700 area in early June to multi-year highs around 1.7180 in the past week. The solid pace of the UK recovery plus expectations of a rate hike by the BoE sooner than markets could anticipate would be behind the GBP’s outstanding performance. “With 345,000 jobs having been created in the past three months alone and business surveys suggesting the recovery is gaining momentum we have moved forward our expectation for the first rate hike to November along with raising our 2014 and 2015 GDP growth forecasts to 3.3% and 3%, respectively”, assessed James Knightley, Analyst at ING Bank.
GBP/USD relevant levels
At the moment the pair is down 0.01% at 1.7131 facing the next support at 1.7105 (low Jul.10) ahead of 1.7095 (low Jul.9) and finally 1.7085 (low Jul.8). On the upside, a break above 1.7168 (high Jul.10) would expose 1.7180 (2014 high Jul.4) and then 1.7203 (high Oct.21 2008).