GBP/USD firmer, eyes 1.7000

By FXstreet.com | Updated July 28, 2014 AAA

FXStreet (Edinburgh) - The sterling is trading on a firmer footing on Monday, taking the GBP/USD just below the 1.7000 handle.

GBP/USD supported at 1.6960

The pair found decent support in the boundaries of 1.6960 last week, extending the drop from recent multi-year peaks near 1.7200 the figure in mid-July. Light docket in the UK economy this week will show M4 Money Supply and Mortgage Approvals (Tuesday) ahead of Markit Manufacturing PMI (Friday) as the main events. “We are also of the opinion that despite benign wage pressures, the BoE will likely be the first of the G4 central banks to raise interest rates, with November still being a defendable date to begin the process. This will help support the sterling, but for now positioning looks crowded and this could lead to a period of consolidation vs USD as the US economy closes in on the FOMC's objectives”, signaled Brian Martin, Analyst at ANZ.

GBP/USD levels to consider

The pair is now up 0.12% at 1.6996 with the next resistance at 1.7054 (high Jul.24). On the downside, a breach of 1.6962 (low Jul.25) would expose 1.6952 (low Jun.25) and finally 1.6943 (50% of 1.6693-1.7192).

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