GBP/USD has a lot priced in for now

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.7074, down -0.23% on the day, having posted a daily high at 1.7146 and low at 1.7070.

With the recent downside unfolding in GBP/USD, we note that there is a great deal priced into GBP/USD still and that “sterling remains in its established uptrend against the US dollar which has been evident since its low at 1.4860 in July last year”, explained Brian Martin, analyst at ANZ. “The pound has recently broken above the 1.70 level and very recently has been consolidating these gains. In part, this consolidation so far in July owes to a natural supply of sterling around current levels. There has also been some evidence that the pace of the UK's recovery is easing a bit whilst there have been increasing signs that the US economy is gathering momentum. This might start to weigh on cable. Much depends on forward guidance in the US and perceptions of when the FOMC may “upgrade” its guidance about the normalisation of US interest rates”.

GBP/USD Levels

Spot is presently trading at 1.7074, and next resistance can be seen at 1.7085 (Daily Classic S1), 1.7091 (Yesterday's Low), 1.7100 (Hourly 20 EMA) and 1.7113 (Weekly Low). Support below can be found at 1.7070 (Daily Low), 1.7065 (Daily 20 SMA), 1.7057 (Daily Classic S2), 1.7038 (Weekly Classic S2) and 1.7023 (Daily Classic S3).

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