2 Jul 2013
GBP/USD bounces off 1.5140
Fxstreet.com (Edinburgh) - After bottoming out around 1.5140, the GBP/USD managed to pick up pace and climb back to the current region of 1.5180 on Tuesday, bolstered by the increasing buying interest.
GBP/USD bearishness remains intact
The pound suffered the worse than expected result from the Construction PMI during June, printing 51 vs 51.1 expected, dragging the pair from the boundaries of 1.5240 to session lows just below 1.5140. “The BoE is widely expected to stay on hold and the debate will now rage on forward guidance… Overall, the divergence between the ECB and BoE suggests selling EUR/GBP on rallies. European curves have started to move lower after the Fed led correction, while the UK will benefit from a stabilization of its main economic partner”, suggested Sebastien Galy, Strategist at Societe Generale.
GBP/USD key levels
At the moment the pair is down 0.31% at 1.5169 with the next support at 1.5111 (low May 30) ahead of 1.5100 (psychological level) and then 1.5049 (76.4% of 1.4832-1.5753). On the upside, a surpass of 1.5238 (high Jul.2) would open the door to 1.5249 (high Jul.1) and then 1.5279 (high Jun.28).
GBP/USD bearishness remains intact
The pound suffered the worse than expected result from the Construction PMI during June, printing 51 vs 51.1 expected, dragging the pair from the boundaries of 1.5240 to session lows just below 1.5140. “The BoE is widely expected to stay on hold and the debate will now rage on forward guidance… Overall, the divergence between the ECB and BoE suggests selling EUR/GBP on rallies. European curves have started to move lower after the Fed led correction, while the UK will benefit from a stabilization of its main economic partner”, suggested Sebastien Galy, Strategist at Societe Generale.
GBP/USD key levels
At the moment the pair is down 0.31% at 1.5169 with the next support at 1.5111 (low May 30) ahead of 1.5100 (psychological level) and then 1.5049 (76.4% of 1.4832-1.5753). On the upside, a surpass of 1.5238 (high Jul.2) would open the door to 1.5249 (high Jul.1) and then 1.5279 (high Jun.28).