18 Jun 2014
GBP/USD dips to lows near 1.6940
FXStreet (Edinburgh) - After quickly climb to session highs beyond 1.7000 the figure, the GBP/USD reverted direction and is now testing fresh intraday lows around 1.6940.
GBP/USD weaker post-BoE minutes
The tone of today’s BoE minutes was not as hawkish as markets were expecting. The MPC did not rule out a rate hike later this year, although it said it was highly unlikely, as costs of a premature hike and/or reverting that move would be high. In addition to a unanimous vote to leave unchanged both the refi rate and the asset purchase facility, there was consensus amongst members of the need to see further evidence of a reduction in the slack prior to rise rates. Spot reacted quickly and retraced the initial gains, dropping to session lows in sub-1.6940 levels. “Resistance zones – 1.6865/80 (from a small topping/reversal pattern on the daily charts) and 1.6925 – have both been breached. Upside targets/resistance located initially at 1.7060, 1.7155 and then 1.7300. Support on dips back lower at 1.6915 and 1.6880”, noted Paul Robson, FX Senior Strategist at RBS.
GBP/USD key levels
At the moment the pair is losing 0.15% at 1.6938 with the next support at 1.6923 (low Jun.13) ahead of 1.6900 (psychological level) and then 1.6855 (daily cloud top). On the flip side, a breakout of 1.7011 (2014 high Jun.16) would target 1.7044 (high Aug.5 2009) en route to 1.7100 (psychological level).
GBP/USD weaker post-BoE minutes
The tone of today’s BoE minutes was not as hawkish as markets were expecting. The MPC did not rule out a rate hike later this year, although it said it was highly unlikely, as costs of a premature hike and/or reverting that move would be high. In addition to a unanimous vote to leave unchanged both the refi rate and the asset purchase facility, there was consensus amongst members of the need to see further evidence of a reduction in the slack prior to rise rates. Spot reacted quickly and retraced the initial gains, dropping to session lows in sub-1.6940 levels. “Resistance zones – 1.6865/80 (from a small topping/reversal pattern on the daily charts) and 1.6925 – have both been breached. Upside targets/resistance located initially at 1.7060, 1.7155 and then 1.7300. Support on dips back lower at 1.6915 and 1.6880”, noted Paul Robson, FX Senior Strategist at RBS.
GBP/USD key levels
At the moment the pair is losing 0.15% at 1.6938 with the next support at 1.6923 (low Jun.13) ahead of 1.6900 (psychological level) and then 1.6855 (daily cloud top). On the flip side, a breakout of 1.7011 (2014 high Jun.16) would target 1.7044 (high Aug.5 2009) en route to 1.7100 (psychological level).