6 Nov 2013
GBP/USD pierces 1.6100 on better data
FXstreet.com (Edinburgh) -The pound is now gathering steam, lifting the GBP/USD beyond the key mark at 1.6100 after upbeat results from the UK economy during September.
GBP/USD extends the ascent
The pair is printing fresh weekly highs above 1.6100 the figure and at the same time continues to trim last week’s sharp losses. Both industrial and manufacturing production surprised traders on Wednesday, expanding at an annual pace of 2.2% and 0.8%, respectively, exceeding estimates and shrugging off August’s drop. There are no more UK releases today, ahead of tomorrow’s BoE. Analysts at TD Securities argued “Looking ahead, we expect the pound to outperform the euro and the commodity currencies in the medium-term but to underperform the USD. The USD should eventually recover as Fed tapering starts to get priced in again, but the pound should outperform the euro as the BoE maintain a less dovish stance than the ECB”.
GBP/USD levels to watch
At the moment the pair is up 0.37% at 1.6104 with the next resistance at 1.6122 (61.8% 1.6258-1.5904) followed by 1.6143 (high Oct.29) and then 1.6207 (high Oct.28). On the downside, a breach of 1.6081 (MA30d) would open the door to 1.6079 (high Oct.30) and finally 1.5957 (MA50d).
GBP/USD extends the ascent
The pair is printing fresh weekly highs above 1.6100 the figure and at the same time continues to trim last week’s sharp losses. Both industrial and manufacturing production surprised traders on Wednesday, expanding at an annual pace of 2.2% and 0.8%, respectively, exceeding estimates and shrugging off August’s drop. There are no more UK releases today, ahead of tomorrow’s BoE. Analysts at TD Securities argued “Looking ahead, we expect the pound to outperform the euro and the commodity currencies in the medium-term but to underperform the USD. The USD should eventually recover as Fed tapering starts to get priced in again, but the pound should outperform the euro as the BoE maintain a less dovish stance than the ECB”.
GBP/USD levels to watch
At the moment the pair is up 0.37% at 1.6104 with the next resistance at 1.6122 (61.8% 1.6258-1.5904) followed by 1.6143 (high Oct.29) and then 1.6207 (high Oct.28). On the downside, a breach of 1.6081 (MA30d) would open the door to 1.6079 (high Oct.30) and finally 1.5957 (MA50d).