GBP/USD popping up to meet supply again

By FXstreet.com | Updated August 06, 2014 AAA

FXStreet (Guatemala) - Currently, GBP/USD is trading at 1.6854, down -0.19% on the day, having posted a daily high at 1.6888 and low at 1.6822.

GBP/USD has popped higher with the market dumping dollars after a large move in the Yen sent shock waves across other pairs. In the case of Sterling, the move was in the region of 30 pips but offers are taking the pair back into the day's range again while we wait to hear what might have caused the move in the greenback. Fat fingers perhaps? Meanwhile, we await the BoE meeting tomorrow. However, we are not expecting any surprises here. What should be of more interest will be the minutes and to understand the thinking that is occurring in respect of the MPC who is moving towards a tightening cycle.

GBP/USD technically bearish

Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the
short‐term technical are bearish. “Yesterday we highlighted that the near‐term risk was (and still is) to a test of the June 12th low of 1.6786. Technicals remain bearish, even as the currency has failed to break to a fresh low over the last several sessions. Still it is too early to fight the downward GBP trend and bearish technical”.

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