25 Oct 2013
GBP/USD upwards ahead of crucial UK GDP data
FXstreet.com (Athens) – The GBP/USD is trading on the upper level, as market participants seem to expect that the forecasted expected expansion of the UK GDP for a third consecutive quarter, will lead soon to more hawkish BoE stance.
GBP/USD upwards on increased rumors that the expected UK GDP expansion will change BoE monetary shift
The GBP/USD is trading upwards ahead of the crucial release of the today’s UK GDP pertaining to the third quarter. There is a great expectance that the UK GDP will climb higher for a third straight quarter, thus, the BoE will probably introduce a much more hawkish stance on its 7th November meeting. All in all, if indeed, we witness a new rise in the UK GDP, it is probably that the faster rate of growth will spark the cross to new highs, as markets will price in a hawkish shift in the BoE policy outlook.
Technical Aspects on the GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD is buttressed against the 1.6259 early October high. This together with the 1.6302/69 2012 highs and 2009-13 resistance line should act in unison to offer some tough overhead resistance for the market. We are alert to failure at this critical zone and note the 13 count on the daily chart from the TD combo indicator (TD resistance lies at 1.6335).”
GBP/USD upwards on increased rumors that the expected UK GDP expansion will change BoE monetary shift
The GBP/USD is trading upwards ahead of the crucial release of the today’s UK GDP pertaining to the third quarter. There is a great expectance that the UK GDP will climb higher for a third straight quarter, thus, the BoE will probably introduce a much more hawkish stance on its 7th November meeting. All in all, if indeed, we witness a new rise in the UK GDP, it is probably that the faster rate of growth will spark the cross to new highs, as markets will price in a hawkish shift in the BoE policy outlook.
Technical Aspects on the GBP/USD
Karen Jones Head Technical Analyst of Commerzbank, mentions that the “GBP/USD is buttressed against the 1.6259 early October high. This together with the 1.6302/69 2012 highs and 2009-13 resistance line should act in unison to offer some tough overhead resistance for the market. We are alert to failure at this critical zone and note the 13 count on the daily chart from the TD combo indicator (TD resistance lies at 1.6335).”