17 Sep 2014
GBP/USD extends recovery; not out of the woods
FXStreet (Córdoba) - GBP/USD inched up at the beginning of the New York session, extending its recovery from multi-month lows as UK employment data came in better than expected in contrast with disappointing US CPI.
GBP/USD stretched to a fresh weekly high of 1.6350 after data showed US consumer prices fell 0.2% in August and 1.7% YoY, versus 0.0% and 1.9% expected. The pound was already on demand and managed to even fill last week gap as UK unemployment rate dropped to 6.2%, beating consensus of 6.3%.
However, Cable remains vulnerable ahead of the Scottish independence referendum due tomorrow, with latest polls giving the ‘no’ vote the lead.
GBP/USD technical levels
In terms of technical levels, immediate resistances are seen at 1.6350 (intraday high), 1.6398/1.6400 (20-day SMA/psychological level) and 1.6415 (61.8% Fibo of 1.6643-1.6051).
GBP/USD stretched to a fresh weekly high of 1.6350 after data showed US consumer prices fell 0.2% in August and 1.7% YoY, versus 0.0% and 1.9% expected. The pound was already on demand and managed to even fill last week gap as UK unemployment rate dropped to 6.2%, beating consensus of 6.3%.
However, Cable remains vulnerable ahead of the Scottish independence referendum due tomorrow, with latest polls giving the ‘no’ vote the lead.
GBP/USD technical levels
In terms of technical levels, immediate resistances are seen at 1.6350 (intraday high), 1.6398/1.6400 (20-day SMA/psychological level) and 1.6415 (61.8% Fibo of 1.6643-1.6051).