GBP/USD keeps highs above 1.7000

By | Updated July 30, 2014 AAA

FXStreet (Edinburgh) - Renewed weakness around the greenback is allowing the GBP/USD to print multi-year highs above the 1.7000 handle on Thursday.

GBP/USD supported by FOMC

A surprising dovish statement by the FOMC on Wednesday ignited the buying interest for riskier assets, giving extra wings to the pound and thus lifting spot above the psychological 1.7000 handle, where it now looks to consolidate. In addition, recent BoE minutes and the tone from MPC members were also supportive of the GBP, collaborating with the upside. In the UK data front, Retail Sales expanded at an annual pace of 3.9% in May, missing forecasts for 4.3% and down from 6.5% in April. Emmanuel Ng, FX Strategist at OCBC Bank, assessed, “The BOE MPC minutes provided little ammunition for GBP bulls despite a slight hint of a more hawkish discussion but subsequent dollar weakness pushed the pair back towards the 1.7000 vicinity… the 1.7000 resistance (before 1.7040/45) still expected to be flimsy in the current environment. On the ø downside, support is expected to emerge on dips to 1.6900”.

GBP/USD levels to consider

The pair is now up 0.16% at 1.7022 and a breakout of 1.7044 (high Aug.5 2009) would expose 1.7100 (psychological level) and finally 1.7105 (low Oct.20 2008). On the downside, the immediate support aligns at 1.6920 (low Jun.18) followed by 1.6900 (psychological level) and then 1.6855 (daily cloud top).

You May Also Like

Related Forex Analysis
  1. Forex News

    GBP/USD Technical Analysis: Range Bottom Back in Play

  2. Forex News

    GBPUSD: Bearish below 1.4985 - 2ndSkies

  3. Forex News

    Top Events this Week Include EZ CPI, Canadian GDP, and US NFPs

  4. Forex News

    What's next? Dollar retakes its rate beliefs; USDJPY jumps 100 pips

  5. Forex News

    Euro Looks at Key Risk - Here is What We’re Watching

Trading Center