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25 Feb 2014
GBP/USD clings to 1.6700
FXStreet (Edinburgh) - The sterling is looking to consolidate the recent bounce off session lows near 1.6640 on Tuesday, with the GBP/USD treading water in the vicinity of 1.6700 the figure.
GBP/USD extends the upside
Spot dipped to 1.6640 following rumours about Ukraine could default, although it’s managed to almost fully recover the deep pullback soon afterwards. The pair is advancing for the second consecutive session so far, recovering ground after last week’s retracement from multi-year highs beyond 1.6820. According to the European Commission Winter Forecasts, the UK economy would expand at an annual rate of 2.5% in 2014 and 2.4% in 2015 while the unemployment rate would drop to 6.8% during the present year and 6.5% in the next one. “The outlook is that net exports will improve somewhat and at least not be such a drag on growth in 2014 and 2015 as trading partners’ growth picks up. Growing exports to Ireland and China (the latter from low levels) should aid this improvement”, according to the EC’s Winter Forecast.
GBP/USD levels to consider
The pair is now advancing 0.23% at 1.6695 facing the next resistance at 1.6700 (high Feb.20) ahead of 1.6734 (high Feb.19) and finally 1.6741 (high Feb.18). On the downside, a break below 1.6610 (low Feb.21) would open the door to 1.6594 (low Feb.13) and then 1.6500 (psychological level).
GBP/USD extends the upside
Spot dipped to 1.6640 following rumours about Ukraine could default, although it’s managed to almost fully recover the deep pullback soon afterwards. The pair is advancing for the second consecutive session so far, recovering ground after last week’s retracement from multi-year highs beyond 1.6820. According to the European Commission Winter Forecasts, the UK economy would expand at an annual rate of 2.5% in 2014 and 2.4% in 2015 while the unemployment rate would drop to 6.8% during the present year and 6.5% in the next one. “The outlook is that net exports will improve somewhat and at least not be such a drag on growth in 2014 and 2015 as trading partners’ growth picks up. Growing exports to Ireland and China (the latter from low levels) should aid this improvement”, according to the EC’s Winter Forecast.
GBP/USD levels to consider
The pair is now advancing 0.23% at 1.6695 facing the next resistance at 1.6700 (high Feb.20) ahead of 1.6734 (high Feb.19) and finally 1.6741 (high Feb.18). On the downside, a break below 1.6610 (low Feb.21) would open the door to 1.6594 (low Feb.13) and then 1.6500 (psychological level).