8 May 2014
GBP/USD in 2-day lows
FXStreet (Edinburgh) - The sterling continues to correct lower on Thursday, dragging the GBP/USD to fresh 2-day lows in the area of 1.6945/40.
GBP/USD weaker after BoE
The pair is extending its decline after posting fresh multi-year highs just pips below the 1.7000 handle on Tuesday, backed by auspicious results in the UK economy. Today the BoE left its policy unchanged, in line with the vast consensus, although spot lacked of legs to follow through 1.6980. “There would appear to be little therefore that can undermine the pound from a domestic perspective. However, growing signs that the US economy may be starting to re-accelerate after the winter lull may soon start to act as a break on cable, but in and of itself, that is unlikely to reverse the pound's rise any time soon. We continue to forecast a move into the low to mid-1.70s in cable and based on our forecasts”, suggested Brian Martin, Senior European Strategist at ANZ.
GBP/USD relevant levels
At the moment the pair is down 0.01% at 1.6949 and a break below 1.6900 (psychological level) would expose 1.6883 (10-d MA) ahead of 1.6866 (low May 7). On the upside, the initial hurdle lines up at 1.6997 (2014 high May 6) followed by 1.7000 (psychological level) and finally 1.7044 (high Aug.5 2009).
GBP/USD weaker after BoE
The pair is extending its decline after posting fresh multi-year highs just pips below the 1.7000 handle on Tuesday, backed by auspicious results in the UK economy. Today the BoE left its policy unchanged, in line with the vast consensus, although spot lacked of legs to follow through 1.6980. “There would appear to be little therefore that can undermine the pound from a domestic perspective. However, growing signs that the US economy may be starting to re-accelerate after the winter lull may soon start to act as a break on cable, but in and of itself, that is unlikely to reverse the pound's rise any time soon. We continue to forecast a move into the low to mid-1.70s in cable and based on our forecasts”, suggested Brian Martin, Senior European Strategist at ANZ.
GBP/USD relevant levels
At the moment the pair is down 0.01% at 1.6949 and a break below 1.6900 (psychological level) would expose 1.6883 (10-d MA) ahead of 1.6866 (low May 7). On the upside, the initial hurdle lines up at 1.6997 (2014 high May 6) followed by 1.7000 (psychological level) and finally 1.7044 (high Aug.5 2009).