13 Jan 2014
GBP/USD is on the rise due to post-NFP moves
FXstreet.com (Moscow) - GBP/USD started the Asia at 1.6486, and began the gradual move higher reaching 1.6507 session high by the moment.
GBP needs to assess the data
Despite the shy rally we see from the early morning, GBP doesn’t look stable, as already the third important UK report in a row showed disappointing results, only supporting the fears that the British economy growth reached its peaks in late 2013. The PMI numbers, and industrial production are slowing, and it gives the BOE all the reasons to leave the monetary policy unchanged. So, for now we will look for all the US and UK data to determine the potential direction of GBP/USD. The first important event will be released tomorrow during European session – UK inflation data is very important to assess the chances for MPC monetary changes. If CPI keeps weakening, wу may see the pair slide to 1.6462 pivot point working as a support level for now. However, for today we may see further upside momentum from GBP/USD, as traders who missed the Friday US data will adjust their positions. The initial target for short-term is 1.6541 resistance level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6462, with support below at 1.6404 (S1), 1.6325 (S2) and 1.6267 (S3), with resistance above at 1.6541 (R1), 1.6599 (R2), and 1.6678 (R3). Hourly Moving Averages are bullish, with the 200SMA at 1.6462 and the daily 20EMA flat at 1.6421. Hourly RSI is neutral at 61.
GBP needs to assess the data
Despite the shy rally we see from the early morning, GBP doesn’t look stable, as already the third important UK report in a row showed disappointing results, only supporting the fears that the British economy growth reached its peaks in late 2013. The PMI numbers, and industrial production are slowing, and it gives the BOE all the reasons to leave the monetary policy unchanged. So, for now we will look for all the US and UK data to determine the potential direction of GBP/USD. The first important event will be released tomorrow during European session – UK inflation data is very important to assess the chances for MPC monetary changes. If CPI keeps weakening, wу may see the pair slide to 1.6462 pivot point working as a support level for now. However, for today we may see further upside momentum from GBP/USD, as traders who missed the Friday US data will adjust their positions. The initial target for short-term is 1.6541 resistance level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6462, with support below at 1.6404 (S1), 1.6325 (S2) and 1.6267 (S3), with resistance above at 1.6541 (R1), 1.6599 (R2), and 1.6678 (R3). Hourly Moving Averages are bullish, with the 200SMA at 1.6462 and the daily 20EMA flat at 1.6421. Hourly RSI is neutral at 61.