13 Nov 2013
GBP/USD still below 1.5900 pre-BoE
FXstreet.com (Edinburgh) -The GBP/USD remains sidelined just below the key 1.5900 handle on Wednesday, as the BoE Quarterly Inflation Report looms closer.
GBP/USD posed for a squeeze higher?
Following yesterday’s lower than expected inflation figures in the UK economy, market consensus would signal either inaction from the BoE or revised projections showing the jobless rate falling at a faster pace than previously estimated, both cases fuelling expectations for a GBP recovery. Paul Robson, Senior Strategist at RBS assessed, “we see potential for GBP to rally on an expected lower unemployment rate (in the latest month) and BoE projections of a faster falling unemployment rate… The BoE's Forward Guidance will be important for GBP's reaction to today's events. This will be most obvious in the press conference. Crucial here is the fact that the policy stance in the UK is driving a domestic recovery that's countercyclical to an apparently weak global business cycle”.
GBP/USD levels to watch
As of writing the pair is losing 0.11% at 1.5888 with the immediate support at 1.5854 (low Nov.12) ahead of 1.5844 (50% of 1.5427-1.6260) and finally 1.5776 (low Sep12). On the upside, a breakout of 1.5992 (high Nov.12) would bring 1.6000 (psychological level) and then 1.6007 (MA10d).
GBP/USD posed for a squeeze higher?
Following yesterday’s lower than expected inflation figures in the UK economy, market consensus would signal either inaction from the BoE or revised projections showing the jobless rate falling at a faster pace than previously estimated, both cases fuelling expectations for a GBP recovery. Paul Robson, Senior Strategist at RBS assessed, “we see potential for GBP to rally on an expected lower unemployment rate (in the latest month) and BoE projections of a faster falling unemployment rate… The BoE's Forward Guidance will be important for GBP's reaction to today's events. This will be most obvious in the press conference. Crucial here is the fact that the policy stance in the UK is driving a domestic recovery that's countercyclical to an apparently weak global business cycle”.
GBP/USD levels to watch
As of writing the pair is losing 0.11% at 1.5888 with the immediate support at 1.5854 (low Nov.12) ahead of 1.5844 (50% of 1.5427-1.6260) and finally 1.5776 (low Sep12). On the upside, a breakout of 1.5992 (high Nov.12) would bring 1.6000 (psychological level) and then 1.6007 (MA10d).