GBP/USD's bounce at 1.6850 finds resistance at 1.6880

By FXstreet.com | August 05, 2014 AAA

FXStreet (San Francisco) - After testing daily highs at 1.6890 in the European session, the GBP/USD fell to trade as low as 1.6850 where the pair found buying interest and it started to recover ground to 1.6880.



Currently, GBP/USD is trading at 1.6878, up 0.09% on the day, having posted a daily high at 1.6891 and low at 1.6845. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.



GBP/USD sentiment



According to Jamie Coleman from FXBeat, "PMIs reinforce notion that BOE and Fed will move years before the rest." He affirms that "being long dollars and pounds against the euro is probably the best way to play for the foreseeable future."



"Markets are pricing in a hike from the BOE as soon as December while the Fed is likely to hang on until mid-2015 unless growth begins to accelerate notably in the US," he concludes.



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