GBP/USD testing the 1.69 handle ahead of FOMC

By FXstreet.com | July 30, 2014 AAA

FXStreet (Guatemala) - GBP/USD is trading at 1.6897, down -0.27% on the day, having posted a daily high at 1.6957 and low at 1.6889.



GBP/USD is suffering on the advancement of the greenback upon positive GDP from the US economy. Yields are higher, dragged up by strength in the dollar this time around. We are pressing on the 1.69 handle here quite heavily and despite being in oversold territory, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that broader developments are contributing to the decline in GBP also, most importantly, she added, as the relative policy outlook as the 2Y UK-US spread continues to narrow, providing less support with a strong and rising correlation to GBP. Next up, FOMC.



GBP/USD Levels



With spot trading at 1.6897, we can see next resistance ahead at 1.6919 (Daily Classic S1), 1.6924 (Weekly Classic S1) and 1.6930 (Hourly 20 EMA). Support below can be found at 1.6889 (Daily Low), 1.6872 (Weekly Classic S2), 1.6856 (Daily Classic S3) and 1.6853 (Daily 100 SMA).



comments powered by Disqus
Related Forex Analysis
  1. AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation
    Forex News

    AUD/USD Recovery Hopes Fade With Reversal Pattern Lacking Confirmation

  2. USD/JPY bulls need to take a breath before a new attack at 110.00
    Forex News

    USD/JPY bulls need to take a breath before a new attack at 110.00

  3. Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low
    Forex News

    Crude Oil Recovers Ahead Of Inventories, Platinum Hits Multi-Year Low

  4. GBP/USD nervous below 1.6200, waiting for data
    Forex News

    GBP/USD nervous below 1.6200, waiting for data

  5. Dollar’s Current Bull Leg Strongest since Rally Through Crisis
    Forex News

    Dollar’s Current Bull Leg Strongest since Rally Through Crisis

Trading Center