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).

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center