7 Nov 2013
GBP/USD wrestling with 1.6020 to the downside
FXstreet.com (London) - GBP/USD is under pressure having collapsed from 1.6080 territory and Sterling is now battling to keep in the 1.60 handle with demand supporting the pair at the 1.6020/30 levels.
GBP/USD came under pressure on Thursday when the BoE gave no support to Sterling in an environment where traders had been surprised and trading on the back foot with the ECB making an aggressive move and cutting rates. This took the dollar higher across the board. Meanwhile, the dollar has been anchored higher with an improvement on the GDP forecasts that actually arrived 1.9% for Q3 vs 1.4% consensus. Sterling will come back into the lime light on the 13th November with research from teams at TD Securities explaining that the much more significant BoE development on the horizon is the Inflation Report next Wednesday (the 13th) where they expect to see some forecast revisions that acknowledge the recently strong UK data. Meanwhile, they explained, “In the shorter term, GBP/USD should focus on the US side of the equation, with GDP this morning, and more importantly, tomorrow’s non-farm payrolls report for October. As has been the case in recent months, stronger US data would be USD positive”.
GBP/USD Levels
The 20 DMA is 1.6068, the 50 DMA is 1.5969 and the 200 DMA is 1.5490. RSI (14) reads 33.80. Supports are ascending from 1.5980, 1.6010 and 1.6020. Spot is currently 1.6043 while resistances are 1.6063, 1.6081, 1.6124, 1.6150 1.6174 and 1.6207.
GBP/USD came under pressure on Thursday when the BoE gave no support to Sterling in an environment where traders had been surprised and trading on the back foot with the ECB making an aggressive move and cutting rates. This took the dollar higher across the board. Meanwhile, the dollar has been anchored higher with an improvement on the GDP forecasts that actually arrived 1.9% for Q3 vs 1.4% consensus. Sterling will come back into the lime light on the 13th November with research from teams at TD Securities explaining that the much more significant BoE development on the horizon is the Inflation Report next Wednesday (the 13th) where they expect to see some forecast revisions that acknowledge the recently strong UK data. Meanwhile, they explained, “In the shorter term, GBP/USD should focus on the US side of the equation, with GDP this morning, and more importantly, tomorrow’s non-farm payrolls report for October. As has been the case in recent months, stronger US data would be USD positive”.
GBP/USD Levels
The 20 DMA is 1.6068, the 50 DMA is 1.5969 and the 200 DMA is 1.5490. RSI (14) reads 33.80. Supports are ascending from 1.5980, 1.6010 and 1.6020. Spot is currently 1.6043 while resistances are 1.6063, 1.6081, 1.6124, 1.6150 1.6174 and 1.6207.