12 May 2014
GBP/USD toying with 1.6900
FXStreet (Edinburgh) - The sterling is trading on an upbeat tone vs. the greenback on Monday, lifting the GBP/USD to the vicinity of the critical barrier at 1.6900.
GBP/USD focus on UK data, QIR
Spot managed to regain traction after finding decent support in the mid-1.6800s last week, recovering ground lost after hitting multi-year highs near 1.7000 the figure. Very interesting week ahead for the pound, as employment figures are due on Wednesday followed by the BoE’s Quarterly Inflation Report. “The largely unrevised GDP and CPI inflation forecasts in this week's Inflation Report are much more influential in determining the near-term policy signal. An ongoing projected inflation undershoot will weigh against any pre-emptive rise in Bank Rate and may also see GBP trade more softly than it has of late given the level of long positioning”, assessed Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
The pair is now advancing 0.24% at 1.6891 and a breakout of 1.6939 (high May 9) would open the door to 1.6975 (high May 8) and finally 1.6997 (2014 high May 6). On the downside, the initial support aligns at 1.6840 (low May 12) ahead of 1.6832 (low May 9) and then 1.6821 (low May 2).
GBP/USD focus on UK data, QIR
Spot managed to regain traction after finding decent support in the mid-1.6800s last week, recovering ground lost after hitting multi-year highs near 1.7000 the figure. Very interesting week ahead for the pound, as employment figures are due on Wednesday followed by the BoE’s Quarterly Inflation Report. “The largely unrevised GDP and CPI inflation forecasts in this week's Inflation Report are much more influential in determining the near-term policy signal. An ongoing projected inflation undershoot will weigh against any pre-emptive rise in Bank Rate and may also see GBP trade more softly than it has of late given the level of long positioning”, assessed Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
The pair is now advancing 0.24% at 1.6891 and a breakout of 1.6939 (high May 9) would open the door to 1.6975 (high May 8) and finally 1.6997 (2014 high May 6). On the downside, the initial support aligns at 1.6840 (low May 12) ahead of 1.6832 (low May 9) and then 1.6821 (low May 2).