25 Sep 2013
GBP/USD capped by 1.6000
FXstreet.com (Edinburgh) - The sterling is struggling to surpass the 1.6000 barrier on Wednesday, driving the GBP/USD to the 1.5985/80 region.
GBP/USD focus on UK docket
Later on during the European morning the CBI Distributive Trades Survey is due although market participants remain focused on tomorrow’s GDP figures for the second quarter. Prior estimates see the UK economy to have expanded 0.7% inter-quarter and 1.5% on a yearly basis, extending the momentum of the nascent recovery. In the opinion of Paul Robson, Senior FX Strategist at RBS, “our focus remains very much on whether the strengthening of UK data lasts beyond the summer… However, structural concerns will not stop markets romancing the idea of an early tightening of monetary policy as the economy recovers. With positioning still marginally short, GBP has upside short-term on a favourable move in rate spreads… However, we still look for GBP/USD to move lower over the next 6 months, on both a stronger USD and weaker GBP”.
GBP/USD relevant levels
The pair is now losing 0.08% at 1.5990 with the immediate support at 1.5996 (low Sep.23) followed by 1.5986 (low Sep.20) and then 1.5955 (low Sep.24). On the flip side, a break above 1.6043 (high Sep.24) would aim for 1.6072 (high Sep.23) and then 1.6145 (high Sep.19).
GBP/USD focus on UK docket
Later on during the European morning the CBI Distributive Trades Survey is due although market participants remain focused on tomorrow’s GDP figures for the second quarter. Prior estimates see the UK economy to have expanded 0.7% inter-quarter and 1.5% on a yearly basis, extending the momentum of the nascent recovery. In the opinion of Paul Robson, Senior FX Strategist at RBS, “our focus remains very much on whether the strengthening of UK data lasts beyond the summer… However, structural concerns will not stop markets romancing the idea of an early tightening of monetary policy as the economy recovers. With positioning still marginally short, GBP has upside short-term on a favourable move in rate spreads… However, we still look for GBP/USD to move lower over the next 6 months, on both a stronger USD and weaker GBP”.
GBP/USD relevant levels
The pair is now losing 0.08% at 1.5990 with the immediate support at 1.5996 (low Sep.23) followed by 1.5986 (low Sep.20) and then 1.5955 (low Sep.24). On the flip side, a break above 1.6043 (high Sep.24) would aim for 1.6072 (high Sep.23) and then 1.6145 (high Sep.19).