10 Apr 2014
GBP/USD consolidating sub-1.6800
FXStreet (Edinburgh) - After dipping to session lows in the 1.6760/55 area, the GBP/USD has now recovered the ground lost and is trading back beyond 1.6780.
GBP/USD still in red below 1.6800
Spot is retracing yesterday’s steep upside, which stalled above 1.6820 at the beginning of the Asian session. In the data front, the BoE left unchanged its monetary policy today, in line with the universal consensus (repo rate at 0.5% and asset purchase program at £375 billion). The bid tone is likely to remain around the sterling, amidst prevailing risk-on sentiment and lack of risk events. “Dips will find minor support at 1.6735/20… Slightly longer term the weekly and monthly charts are indicating that this is the end of the move however the market could reach 1.7041, the August 2009 peak ahead of failure”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD levels to consider
As of writing the pair is losing 0.06% at 1.6782 and a breakdown of 1.6725 (low Apr.9) would target 1.6700 (psychological level) en route to 1.6684 (low Mar.31). On the upside, the initial hurdle aligns at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).
GBP/USD still in red below 1.6800
Spot is retracing yesterday’s steep upside, which stalled above 1.6820 at the beginning of the Asian session. In the data front, the BoE left unchanged its monetary policy today, in line with the universal consensus (repo rate at 0.5% and asset purchase program at £375 billion). The bid tone is likely to remain around the sterling, amidst prevailing risk-on sentiment and lack of risk events. “Dips will find minor support at 1.6735/20… Slightly longer term the weekly and monthly charts are indicating that this is the end of the move however the market could reach 1.7041, the August 2009 peak ahead of failure”, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD levels to consider
As of writing the pair is losing 0.06% at 1.6782 and a breakdown of 1.6725 (low Apr.9) would target 1.6700 (psychological level) en route to 1.6684 (low Mar.31). On the upside, the initial hurdle aligns at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).