8 Jul 2013
GBP/USD holds highs around 1.4940
FXstreet.com (Barcelona) - The sterling is keeping session highs in the vicinity of 1.4940 on Monday, as markets continue to favour the risk-on trade.
GBP/USD trimming losses
The pound is extending its intraday ascent, paring last week’s strong losses on the BoE’s forward guidance prospects. Analysts at RBS assessed “With recent high frequency data pointing to Q2:13 GDP growth of 0.7% qoq, it’s hard to imagine UK data getting much better from here. Demand from corporate hedging activity may slow the pace of decline. However, the longer we stay at current levels, the quicker this hedging demand will be filled. This increases the downside risks for GBP if/when the data start to soften once again”.
GBP/USD key levels
The pair is now advancing 0.45% at 1.4942 and a breakout of the psychological level at 1.5000 would expose 1.5077 (high Jul.5) and then 1.5172 (MA10d). On the downside, support levels align at 1.4859 (low Jul.8) ahead of 1.4855 (low Jul.5) and finally 1.4832 (2013 low Mar.12).
GBP/USD trimming losses
The pound is extending its intraday ascent, paring last week’s strong losses on the BoE’s forward guidance prospects. Analysts at RBS assessed “With recent high frequency data pointing to Q2:13 GDP growth of 0.7% qoq, it’s hard to imagine UK data getting much better from here. Demand from corporate hedging activity may slow the pace of decline. However, the longer we stay at current levels, the quicker this hedging demand will be filled. This increases the downside risks for GBP if/when the data start to soften once again”.
GBP/USD key levels
The pair is now advancing 0.45% at 1.4942 and a breakout of the psychological level at 1.5000 would expose 1.5077 (high Jul.5) and then 1.5172 (MA10d). On the downside, support levels align at 1.4859 (low Jul.8) ahead of 1.4855 (low Jul.5) and finally 1.4832 (2013 low Mar.12).