GBP/USD flirting with 1.6700

By FXstreet.com | August 15, 2014 AAA

FXStreet (Edinburgh) - The sterling seems to be gathering buying momentum vs. the greenback on Wednesday, pushing the GBP/USD to another test of the 1.6700 handle.

GBP/USD still capped by 1.6700

Despite decent figures from the UK GDP during the second quarter - expanding in line with expectations 0.8% inter-quarter and 3.1% on a yearly basis – the pound remains unable to pick up pace, with upside attempts limited by the 1.6700 mark so far. Spot is prolonging its downside momentum this week, triggered by a dovish tone by the BoE in its Quarterly Inflation Report. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “has tested and is so far holding the 200 day moving average at 1.6664. The rebound from here is indicated to terminate at 1.6760/1.6825, i.e. the rebound should halt ahead of the 6 week downtrend and while capped here the market will remain directly offered”.

GBP/USD levels to watch

As of writing the pair is up 0.02% en 1.6690 and a surpass of 1.6774 (Tenkan Sen) would target 1.6783 (23.6% of 1.7192-1.6657) en route to 1.6787 (10-d MA). On the flip side, the immediate support aligns at 1.6657 (low Aug.14) ahead of 1.6633 (76.4% of 1.6460-1.7192) and finally 1.6605 (low Apr.8).

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD upside remains corrective – Commerzbank
    Forex News

    GBP/USD upside remains corrective – Commerzbank

  2. USD/CHF shows recovery attempts, as it bottomed at 0.9340
    Forex News

    USD/CHF shows recovery attempts, as it bottomed at 0.9340

  3. SEB:  More EUR/USD buying seen above 1.2943 - eFXnews
    Forex News

    SEB: More EUR/USD buying seen above 1.2943 - eFXnews

  4. GBP/USD Daily Outlook - September 19
    Investing

    GBP/USD Daily Outlook - September 19

  5. USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI
    Forex News

    USD/CAD at Risk for Larger Downside Correction on Sticky Canada CPI

Trading Center