8 Aug 2013
GBP/USD using perception as fuel to push through resistance; next ceiling at 1.5601
FXstreet.com (Barcelona) - The BOE and Governor Carney provided the fuel needed to push the GBP/USD through the short-term high at 1.5433 Wednesday. No data in England Thursday means the focus will be on US data tomorrow.
The perception of the BOE / Carney news and comments was GBP-bullish
Whether there was any substance behind the perceived changes in England’s monetary policy is up for debate. It may just be that they are now actually verbalizing a pro-growth / contained-inflation dual mandate – which is what they’ve showed by their actions has been their policy all along.
Additionally, there seems to be a perception that the US Fed is going to maintain their QE / bond-buying program through the end of September. That was not necessarily Dollar-bearish, but it certainly did nothing to slow down the GBP/USD’s advance Wednesday. So, at least for the time being, the markets are perceiving the near-term future as bullish for the pound and bearish (or less bullish) for the US Dollar.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 (from 1.5486 currently) before making the big downside move. Shorter-term resistance comes in at the May 3rd peak at 1.5601 while short-term support comes in at Monday’s close of 1.5353.
The perception of the BOE / Carney news and comments was GBP-bullish
Whether there was any substance behind the perceived changes in England’s monetary policy is up for debate. It may just be that they are now actually verbalizing a pro-growth / contained-inflation dual mandate – which is what they’ve showed by their actions has been their policy all along.
Additionally, there seems to be a perception that the US Fed is going to maintain their QE / bond-buying program through the end of September. That was not necessarily Dollar-bearish, but it certainly did nothing to slow down the GBP/USD’s advance Wednesday. So, at least for the time being, the markets are perceiving the near-term future as bullish for the pound and bearish (or less bullish) for the US Dollar.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 (from 1.5486 currently) before making the big downside move. Shorter-term resistance comes in at the May 3rd peak at 1.5601 while short-term support comes in at Monday’s close of 1.5353.