FXStreet (Edinburgh) - The sterling extends its intraday upside, lifting the GBP/USD to test the 1.6600 neighbourhood.
GBP/USD firmer on risk
The pound is decoupling from its European counterpart on Wednesday, pushing higher to the upper 1.65s as the buying interest keeps swelling. A loss of upside momentum in the USD is also collaborating with today’s shot higher amidst scarce docket in both the UK and the US. “The options market is not pricing any renewed risk of upside GBP risk, as risk reversals continue to trade with the currency. If anything it is a warning to sterling bears that the bond market is beginning to price a different path”, assessed Camilla Sutton, Chief FX Strategist at Scotiabank.
GBP/USD key levels
The pair is now up 0.31% at 1.6592 with the next hurdle at 1.6599 (high Aug.25) ahead of 1.6602 (high Aug.21) and finally 1.6633 (10-d MA). On the flip side, a breakdown of 1.6540 (low Aug.26) would expose 1.6500 (psychological level) and then 1.6460 (low Mar.24).