GBP/USD recovers after the slide to 1.7130 on Goldman Sachs forecasts

By FXstreet.com | July 06, 2014 AAA

FXStreet (Moscow) - GBP/USD started the day at 1.7157, and moved lower reaching 1.7134, but rebounding to 1.7150 area by the moment.

Hopes and expectations

Although the pound came under pressure in the morning on the news that Goldman Sachs moved the Fed’s first hike forecast to earlier dates, the pair is still trading not far from multi-year highs reached last week. The market still believes that Carney and Co will have to move to tightening mode earlier than is forecasted. And although the coming BOE meeting is highly expected to be another non-event, small part of traders may still price in the possibility of views divergence within the MPC. It means that new record highs for the pair may be just a matter of time. The initial target to the upside may lie at 1.7183 resistance.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.7157, with support below at 1.7133, 1.7107, and 1.7083 with resistance above at 1.7183, 1.7207, and 1.7233. Hourly Moving Averages are bullish, with the 200SMA at 1.7081, and the daily 20EMA bullish at 1.7022. Hourly RSI is bearish at 41.

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