10 Apr 2014
GBP/USD eases from highs
FXStreet (Edinburgh) - The sterling is now returning to sub-1.6800 levels after the GBP/USD hit fresh highs around 1.6820 overnight, just pips lower than ytd tops at 1.6823 (February 16th).
GBP/USD focus on BoE
The risk-on sentiment accelerated after yesterday’s dovish tone from the FOMC meeting, bolstering the generalized bullish momentum in the risk space. The pair climbed more than 2 big-figures since Monday, although it lacked of vigour to follow through the 1.6820 level. Ahead in the day the BoE will hold its monthly meeting, although market consensus expects its policy to remain unchanged. According to Camilla Sutton, Chief FX Strategist at Scotiabank, the pair’s “technical studies warn of upside risk, as GBP flirts with a break above its multi-year high of 1.6823; accordingly there is resistance at this level, with support at the March 31st high of 1.6684”.
GBP/USD levels to watch
As of writing the pair is losing 0.06% at 1.6781 and a breakdown of 1.6700 (psychological level) would open the door to 1.6644 (low Feb.14) and then 1.6632 (10-d MA). On the upside, the initial hurdle aligns at 1.6823 (2014 high Feb.17) followed by 1.6845 (high Nov.18 2009) and finally 1.6879 (high Nov.16 2009).
GBP/USD focus on BoE
The risk-on sentiment accelerated after yesterday’s dovish tone from the FOMC meeting, bolstering the generalized bullish momentum in the risk space. The pair climbed more than 2 big-figures since Monday, although it lacked of vigour to follow through the 1.6820 level. Ahead in the day the BoE will hold its monthly meeting, although market consensus expects its policy to remain unchanged. According to Camilla Sutton, Chief FX Strategist at Scotiabank, the pair’s “technical studies warn of upside risk, as GBP flirts with a break above its multi-year high of 1.6823; accordingly there is resistance at this level, with support at the March 31st high of 1.6684”.
GBP/USD levels to watch
As of writing the pair is losing 0.06% at 1.6781 and a breakdown of 1.6700 (psychological level) would open the door to 1.6644 (low Feb.14) and then 1.6632 (10-d MA). On the upside, the initial hurdle aligns at 1.6823 (2014 high Feb.17) followed by 1.6845 (high Nov.18 2009) and finally 1.6879 (high Nov.16 2009).