3 Dec 2013
GBP/USD capped by 1.6400
FXstreet.es (Edinburgh) - The sterling managed to break above the 1.6350/60range overnight, lifting the GBP/USD to the region of 1.6380/85 so far.
GBP/USD focus on PMI
The optimism around the pound remains intact on Tuesday, despite yesterday’s pullback. After hitting 2013 highs beyond 1.6440 early Monday, the pair initiated a correction lower in spite of positive results from the manufacturing PMI in November. Ahead in the day, November’s Construction PMI is due, with consensus expecting the index to ease to 59.0 from 59.4. In light of the incipient recovery in the UK economy, Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, commented, “The UK is growing faster than Japan. “Osbornomics” is paying off with an old-style housing led recovery likely to continue in the run up to the 2015 general election… We expect the strong growth trend to continue. It supports a positive view on sterling and on the more domestically focused midcap sector of the UK stock market”.
GBP/USD levels to watch
At the moment the pair is up 0.22% at 1.6390 facing the next hurdle at 1.6443 (2013 high Dec.2) followed by 1.6455 (high Aug.29 2011) and finally 1.6500 (psychological level). On the flip side, a break below 1.6315 (low Nov.29) would aim for 1.6277 (low Nov.28) and then 1.6260 (high Oct.1).
** FXstreet.es, noticias de divisas **
GBP/USD focus on PMI
The optimism around the pound remains intact on Tuesday, despite yesterday’s pullback. After hitting 2013 highs beyond 1.6440 early Monday, the pair initiated a correction lower in spite of positive results from the manufacturing PMI in November. Ahead in the day, November’s Construction PMI is due, with consensus expecting the index to ease to 59.0 from 59.4. In light of the incipient recovery in the UK economy, Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment, commented, “The UK is growing faster than Japan. “Osbornomics” is paying off with an old-style housing led recovery likely to continue in the run up to the 2015 general election… We expect the strong growth trend to continue. It supports a positive view on sterling and on the more domestically focused midcap sector of the UK stock market”.
GBP/USD levels to watch
At the moment the pair is up 0.22% at 1.6390 facing the next hurdle at 1.6443 (2013 high Dec.2) followed by 1.6455 (high Aug.29 2011) and finally 1.6500 (psychological level). On the flip side, a break below 1.6315 (low Nov.29) would aim for 1.6277 (low Nov.28) and then 1.6260 (high Oct.1).
** FXstreet.es, noticias de divisas **