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20 Sep 2013
GBP/USD edging higher, eyes 1.6060
FXstreet.com (Edinburgh) -The sterling is drifting higher on Friday, taking the GBP/USD to the vicinity of 1.6060 after falling to recent lows near 1.6020.
GBP/USD easy day ahead, likely to keep the range
The pair has advanced in 8 out of the last 11 weeks, fueled by skepticism surrounding Carney’s forward guidance and a firmer recovery of the UK economy that is prompting investors to think about a sooner rate hike, at least sooner than the BoE expects. Recent data from high street retailers weighed on the pair although the more ample bullish frame remains intact. Tim Riddell, Head of Global Markets Research at ANZ, commented, “Risk of enough having been achieved already should not be ignored. The move is stretched and so vulnerable to pullbacks as shown by yesterday’s pullback to the mid-pint of this week’s range (1.6025). Any deeper pullback could trigger (below 1.5960) retracements of the rally from late August’s 1.5430 low (38.2% at 1.5885, 50% at 1.5795)”.
GBP/USD relevant levels
At the moment the pair is up 0.17% at 1.6057 with the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and then 1.6182 (high Jan.11). On the downside, a break below 1.6028 (low Sep.20) would bring 1.6022 (low Sep.19) and finally the psychological level at 1.6000.
GBP/USD easy day ahead, likely to keep the range
The pair has advanced in 8 out of the last 11 weeks, fueled by skepticism surrounding Carney’s forward guidance and a firmer recovery of the UK economy that is prompting investors to think about a sooner rate hike, at least sooner than the BoE expects. Recent data from high street retailers weighed on the pair although the more ample bullish frame remains intact. Tim Riddell, Head of Global Markets Research at ANZ, commented, “Risk of enough having been achieved already should not be ignored. The move is stretched and so vulnerable to pullbacks as shown by yesterday’s pullback to the mid-pint of this week’s range (1.6025). Any deeper pullback could trigger (below 1.5960) retracements of the rally from late August’s 1.5430 low (38.2% at 1.5885, 50% at 1.5795)”.
GBP/USD relevant levels
At the moment the pair is up 0.17% at 1.6057 with the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and then 1.6182 (high Jan.11). On the downside, a break below 1.6028 (low Sep.20) would bring 1.6022 (low Sep.19) and finally the psychological level at 1.6000.