7 Aug 2013
GBP/USD advances beyond 1.5500
FXstreet.com (Edinburgh) -The sterling keeps the bull run alive on Tuesday, pushing the GBP/USD beyond 1.5500, more than 3 big-figures from lows post-BoE.
GBP/USD extends gains
After an ephemeral drop to test the boundaries of 1.5200 post-Carney, the sterling initiated a pronounced ascent to the proximity of 1.5530, or 7-week highs. The implementation of forward guidance by the BoE and the adoption of the unemployment rate as threshold were interpreted as positive for the sterling, this being less dovish than market expectations. “On current forecasts, market economists do not see a fall in the unemployment rate down to the threshold until well into 2016, so it would be unrealistic to expect market interest rates to shift significantly on today's release. If interest rate expectations do not ratchet higher, it seems unlikely GBP will outperform significantly”, assessed Strategist Paul Robson at RBS.
GBP/USD levels to watch
At the moment the pair is advancing 0.99% at 1.5502 1.5540 (MA200d) would accelerate the upside to 1.5600 (psychological level) and finally 1.5678 (high Jun.19). On the downside, the initial support aligns at 1.5205 (low Aug.7) followed by 1.5198 (38.2% of 1.5435-1.4814) and then 1.5104 (low Aug.1).
GBP/USD extends gains
After an ephemeral drop to test the boundaries of 1.5200 post-Carney, the sterling initiated a pronounced ascent to the proximity of 1.5530, or 7-week highs. The implementation of forward guidance by the BoE and the adoption of the unemployment rate as threshold were interpreted as positive for the sterling, this being less dovish than market expectations. “On current forecasts, market economists do not see a fall in the unemployment rate down to the threshold until well into 2016, so it would be unrealistic to expect market interest rates to shift significantly on today's release. If interest rate expectations do not ratchet higher, it seems unlikely GBP will outperform significantly”, assessed Strategist Paul Robson at RBS.
GBP/USD levels to watch
At the moment the pair is advancing 0.99% at 1.5502 1.5540 (MA200d) would accelerate the upside to 1.5600 (psychological level) and finally 1.5678 (high Jun.19). On the downside, the initial support aligns at 1.5205 (low Aug.7) followed by 1.5198 (38.2% of 1.5435-1.4814) and then 1.5104 (low Aug.1).