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2 Aug 2013
GBP/USD up eyeing 1.5300
FXstreet.com (Edinburgh) - The sterling keeps pushing higher, with the GBP/USD closer to the psychological resistance at 1.5300.
GBP/USD good UK data, poor US results
Today’s steep correction higher is propped by an auspicious Construction PMI print in the UK during July, followed by lacklustre data from the US labour market - despite the jobless rate ticked lower – and factory orders, pouring cold water over the recent USD rally. However, the pound looks set to remain on focus ahead of the BoE’s Quarterly Inflation Report, where the MPC would decide regarding the implementation of forward guidance and/or the adoption of thresholds for monetary policy. In the opinion of Eric Theoret, Strategist at Scotiabank, the technical studies for the pair remain bearish in the short-term, adding, “MACD and RSI are both bearish and near term resistance appears to be found at 1.5183, the 9 day MA. The next key downside level is 1.5051, the 61.8% Fibo retracement of the July rally”.
GBP/USD key levels
At the moment the pair is up 1.16% at 1.5295 and a surpass of 1.5318 (MA10d) would open the door to 1.5353 (high Jul.30) and finally 1.5416 (high Jul.26). On the downside, the initial support lines up at 1.5104 (low Aug.2) ahead of 1.5080 (low Jul.17) and then 1.5051 (50% of 1.5435-1.4814).
GBP/USD good UK data, poor US results
Today’s steep correction higher is propped by an auspicious Construction PMI print in the UK during July, followed by lacklustre data from the US labour market - despite the jobless rate ticked lower – and factory orders, pouring cold water over the recent USD rally. However, the pound looks set to remain on focus ahead of the BoE’s Quarterly Inflation Report, where the MPC would decide regarding the implementation of forward guidance and/or the adoption of thresholds for monetary policy. In the opinion of Eric Theoret, Strategist at Scotiabank, the technical studies for the pair remain bearish in the short-term, adding, “MACD and RSI are both bearish and near term resistance appears to be found at 1.5183, the 9 day MA. The next key downside level is 1.5051, the 61.8% Fibo retracement of the July rally”.
GBP/USD key levels
At the moment the pair is up 1.16% at 1.5295 and a surpass of 1.5318 (MA10d) would open the door to 1.5353 (high Jul.30) and finally 1.5416 (high Jul.26). On the downside, the initial support lines up at 1.5104 (low Aug.2) ahead of 1.5080 (low Jul.17) and then 1.5051 (50% of 1.5435-1.4814).