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. USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation
    Forex News

    USD/JPY Traders Await Clearer Guidance As A Doji Signals Hesitation

  2. USD/JPY is dancing around 107.00
    Forex News

    USD/JPY is dancing around 107.00

  3. USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision
    Forex News

    USD/CAD Tests Critical Barrier As Intraday Dojis Denote Indecision

  4. NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades
    Forex News

    NZD/USD Stalls At 0.8000 Barrier As A Doji Arises & Volume Fades

  5. EUR/USD sidelined above 1.2700
    Forex News

    EUR/USD sidelined above 1.2700

Trading Center