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30 Jul 2014
GBP/USD testing the 1.69 handle ahead of FOMC
FXStreet (Guatemala) - GBP/USD is trading at 1.6897, down -0.27% on the day, having posted a daily high at 1.6957 and low at 1.6889.
GBP/USD is suffering on the advancement of the greenback upon positive GDP from the US economy. Yields are higher, dragged up by strength in the dollar this time around. We are pressing on the 1.69 handle here quite heavily and despite being in oversold territory, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that broader developments are contributing to the decline in GBP also, most importantly, she added, as the relative policy outlook as the 2Y UK-US spread continues to narrow, providing less support with a strong and rising correlation to GBP. Next up, FOMC.
GBP/USD Levels
With spot trading at 1.6897, we can see next resistance ahead at 1.6919 (Daily Classic S1), 1.6924 (Weekly Classic S1) and 1.6930 (Hourly 20 EMA). Support below can be found at 1.6889 (Daily Low), 1.6872 (Weekly Classic S2), 1.6856 (Daily Classic S3) and 1.6853 (Daily 100 SMA).
GBP/USD is suffering on the advancement of the greenback upon positive GDP from the US economy. Yields are higher, dragged up by strength in the dollar this time around. We are pressing on the 1.69 handle here quite heavily and despite being in oversold territory, Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that broader developments are contributing to the decline in GBP also, most importantly, she added, as the relative policy outlook as the 2Y UK-US spread continues to narrow, providing less support with a strong and rising correlation to GBP. Next up, FOMC.
GBP/USD Levels
With spot trading at 1.6897, we can see next resistance ahead at 1.6919 (Daily Classic S1), 1.6924 (Weekly Classic S1) and 1.6930 (Hourly 20 EMA). Support below can be found at 1.6889 (Daily Low), 1.6872 (Weekly Classic S2), 1.6856 (Daily Classic S3) and 1.6853 (Daily 100 SMA).