GBP/USD may show some recovery attempts

By FXstreet.com | Updated July 28, 2014 AAA

FXStreet (Moscow) - GBP/USD opened the day at 1.6977, hesitated in Asia, but moved higher in European open reaching 1.6983 by the moment.



US drivers



The pair came under pressure last week not only due to broad USD strength, but also due to some disappointing data from the UK. We need to stress that the reports were not that weak at all, but the market needs more evidence of stronger than expected British economy, thus, the reading just meeting expectations is not enough. Unfortunately, the week ahead does not promise anything significant on UK data, meaning the pair may take US reports as the key drivers in the short-term. Stronger than expected readings may put the pair under additional pressure with 1.6958 support in view.



What are today’s key GBP/USD levels?



Today's central pivot point can be found at 1.6978, with support below at 1.6958, 1.6940 and 1.6920 with resistance above at 1.69969, 1.7016, and 1.7034. Hourly Moving Averages are largely bearish, with the 200SMA bearish at 1.7067, and the daily 20EMA bearish at 1.7059. Hourly RSI is bearish at 43.



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