6 Feb 2014
GBP/USD lost support from UK data, stays at 1.63
FXStreet (Moscow) - GBP/USD was again betrayed by UK data, stays around 1.63
PMI – we need to have a thorough picture?
The pound is confused as well as the market. During half a year we saw good growth above the trend from different sectors of the British economy. The finance minister George Osborne even cancelled the Funding-for-Lending scheme being scared to overheat the housing market. And now we get a series of disappointments – yesterday services PMI peaked in last October, and since that time it’s been in descending mode. The market is not ready for full-blown sell-off of the pair, though some really significant catalyst will definitely trigger the drop. Today all eyes on Draghi and Co – positive ramifications for the euro will bring more pressure to the pound through EUR/GBP cross. The initial target in this case may be at 1.6353 resistance level. Should the PMI brings some negative surprises, the move down will be limited by 1.6262 support level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6302, with support below at 1.6262, 1.6211 and 1.6171, with resistance above at 1.6353, 1.6393, and 1.6444. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6453, and the daily 20EMA bearish at 1.6438. Hourly RSI is neutral at 46.
PMI – we need to have a thorough picture?
The pound is confused as well as the market. During half a year we saw good growth above the trend from different sectors of the British economy. The finance minister George Osborne even cancelled the Funding-for-Lending scheme being scared to overheat the housing market. And now we get a series of disappointments – yesterday services PMI peaked in last October, and since that time it’s been in descending mode. The market is not ready for full-blown sell-off of the pair, though some really significant catalyst will definitely trigger the drop. Today all eyes on Draghi and Co – positive ramifications for the euro will bring more pressure to the pound through EUR/GBP cross. The initial target in this case may be at 1.6353 resistance level. Should the PMI brings some negative surprises, the move down will be limited by 1.6262 support level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6302, with support below at 1.6262, 1.6211 and 1.6171, with resistance above at 1.6353, 1.6393, and 1.6444. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6453, and the daily 20EMA bearish at 1.6438. Hourly RSI is neutral at 46.