17 Jun 2014
GBP/USD takes a deep breath at 1.6980 before the UK CPI
FXStreet (Moscow) - GBP/USD started the day at 1.6976, gradually slid to 1.6957, but had to go back to 1.6980 area.
In this circumstances…
Although the pair may show strength even without any fundamental catalysts which was proved yesterday morning, when the pound hang by one arm on 1.70, but retreated. Today we may see another reason to expect more from the BOE. The scheduled for release CPI data is forecasted to show lower inflation pressure at 1.7% in May. Given the weak wage growth, it looks real and even convinced traders to reduce the number of long positions. In such circumstances even slightly stronger than expected readings may trigger good demand on the pair with initial target at 1.7010 resistance.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6984, with support below at 1.6957, 1.6931, 1.6904 with resistance above at 1.7010, 1.7037, and 1.7063. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6838, and the daily 20EMA bullish at 1.6835. Hourly RSI is bullish at 50.
In this circumstances…
Although the pair may show strength even without any fundamental catalysts which was proved yesterday morning, when the pound hang by one arm on 1.70, but retreated. Today we may see another reason to expect more from the BOE. The scheduled for release CPI data is forecasted to show lower inflation pressure at 1.7% in May. Given the weak wage growth, it looks real and even convinced traders to reduce the number of long positions. In such circumstances even slightly stronger than expected readings may trigger good demand on the pair with initial target at 1.7010 resistance.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6984, with support below at 1.6957, 1.6931, 1.6904 with resistance above at 1.7010, 1.7037, and 1.7063. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6838, and the daily 20EMA bullish at 1.6835. Hourly RSI is bullish at 50.