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27 Jan 2014
GBP/USD toying with 1.6500
FXstreet.com (Edinburgh) - The 1.6500 level continues to be elusive for the GBP/USD so far, with traders now taking the pair to the area of 1.6490.
GBP/USD outlook remains bullish
The sterling is following its European peer on Monday, attempting a consolidation pattern amidst a generalized lack of a clear trend in the markets. After hitting a more than 2-year high on Friday in the vicinity of 1.6670, spot sparked a correction lower to sub-1.6500 levels, remaining there so far. The solid fundamentals behind the UK recovery continue to support the upbeat momentum in the pound, despite Governor Carney strengthened the BoE’s forward guidance last week. Traders are now focusing on February 12th, where the central bank will publish its Quarterly Inflation Report. Ahead in the week, the advanced GDP figures for the last three months of 2013 are due, with prior surveys expecting the UK economy to have expanded 0.8% inter-quarter, matching the previous reading.
GBP/USD key levels
The pair is now losing 0.02% at 1.6497 with the next support at 1.6452 (low Jan.22) ahead of 1.6400 (low Jan.21) and then 1.6396 (low Jan.20). On the upside, a breakout of 1.6615 (high Jan.23) would open the door to 1.6668 (2014 high Jan.24) and finally 1.6700 (psychological level).
GBP/USD outlook remains bullish
The sterling is following its European peer on Monday, attempting a consolidation pattern amidst a generalized lack of a clear trend in the markets. After hitting a more than 2-year high on Friday in the vicinity of 1.6670, spot sparked a correction lower to sub-1.6500 levels, remaining there so far. The solid fundamentals behind the UK recovery continue to support the upbeat momentum in the pound, despite Governor Carney strengthened the BoE’s forward guidance last week. Traders are now focusing on February 12th, where the central bank will publish its Quarterly Inflation Report. Ahead in the week, the advanced GDP figures for the last three months of 2013 are due, with prior surveys expecting the UK economy to have expanded 0.8% inter-quarter, matching the previous reading.
GBP/USD key levels
The pair is now losing 0.02% at 1.6497 with the next support at 1.6452 (low Jan.22) ahead of 1.6400 (low Jan.21) and then 1.6396 (low Jan.20). On the upside, a breakout of 1.6615 (high Jan.23) would open the door to 1.6668 (2014 high Jan.24) and finally 1.6700 (psychological level).