GBP/USD steady in the lows for week

By FXstreet.com | Updated August 15, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6687, up 0.01% on the day, having posted a daily high at 1.6703 and low at 1.6677.

GBP/USD is steady in the lows for the week and as analysts at Rabobank noted, if there is was one take-away from the Inflation Report this week is that there is no real pressure on the BoE to hike rates until wages push higher. “It is difficult to argue this point. We would therefore suggest that the message from the Bank is fairly clear. That said, evaluating the outlook for wage changes could yet be contentious. The lack of wage inflation has surprised most economists this year and, in light of the fairly rapid drop in the unemployment rate, no doubt there will be some forecasters expecting wage growth to accelerate in the near–term. In fact the minutes of the July policy meeting concede that “some survey indicators of wage growth has already picked up materially”.

GBP/USD hourly levels

Spot is presently trading at 1.6688, and next resistance can be seen at 1.6690 (Hourly 20 EMA), 1.6699 (Yesterday's High), 1.6703 (Daily High), 1.6704 (Daily Classic R1) and 1.6723 (Daily Classic R2). Support below can be found at 1.6686 (Weekly Classic S2) and 1.6680 (Daily Classic PP).

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