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17 Apr 2014
GBP/USD now deflates to 1.6810
FXStreet (Edinburgh) - The sterling’s intraday upside is now losing some vigour, dragging the GBP/USD back to the 1.6815/10 area.
GBP/USD in multi-year peaks
The pair advanced to the area of 1.6840 overnight, levels last seen in 2009, following the renewed expectations of an early rate hike by the BoE. The recent improvement in the UK’s labour market would be fuelling those expectations and propping up the current GBP rally. According to Emmanuel Ng, FX Strategist at OCBC Bank, “We retain our multi-session upside objective of 1.7035 for the GBP-USD with markets also looking to attach more hawkish intentions to the BOE once again. On this front, look towards BOE MPC minutes due next Wednesday for further cues. In the interim, key psychological support may materialize at 1.6700”.
GBP/USD significant levels
As of writing the pair is advancing 0.11% at 1.6817 facing the next hurdle at 1.6845 (high Nov.18 2009) followed by 1.6879 (high Nov.16 2009) and finally 1.7045 (high Aug.5 2009). On the flip side, a breakdown of 1.6823 (high Feb.17) would open the door to 1.6821 (high Apr.10) and then 1.6721 (low Apr.16).
GBP/USD in multi-year peaks
The pair advanced to the area of 1.6840 overnight, levels last seen in 2009, following the renewed expectations of an early rate hike by the BoE. The recent improvement in the UK’s labour market would be fuelling those expectations and propping up the current GBP rally. According to Emmanuel Ng, FX Strategist at OCBC Bank, “We retain our multi-session upside objective of 1.7035 for the GBP-USD with markets also looking to attach more hawkish intentions to the BOE once again. On this front, look towards BOE MPC minutes due next Wednesday for further cues. In the interim, key psychological support may materialize at 1.6700”.
GBP/USD significant levels
As of writing the pair is advancing 0.11% at 1.6817 facing the next hurdle at 1.6845 (high Nov.18 2009) followed by 1.6879 (high Nov.16 2009) and finally 1.7045 (high Aug.5 2009). On the flip side, a breakdown of 1.6823 (high Feb.17) would open the door to 1.6821 (high Apr.10) and then 1.6721 (low Apr.16).