4 Sep 2013
GBP/USD bounce off 1.5600 to test highs
FXstreet.com (Edinburgh) -The GBP/USD is quickly bouncing off the key handle at 1.5600 on Wednesday to post fresh intraday peaks in the area of 1.5640, as markets suddenly shifted to a risk-on mode.
GBP/USD propelled by data, risk appetite
Better-than-expected Services PMI in the UK during August boosted the pound, adding to the sustainability of the recovery in the British economy in the last periods. According to Lee Hardman, Currency Analyst at BTMU, “We doubt that a stronger UK economic recovery will prove enough to materially ease pound weakness in the year ahead given structural weakness resulting from still loose BoE policy and the UK’s elevated current account deficit as external financing conditions tighten”.
GBP/USD relevant level
The pair is now advancing 0.55% at 1.5643 with the next resistance at 1.5638 (high Aug.23) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17). On the downside, a breach of 1.5556 (low Sep.4) would open the door to 1.5548 (MA10d) and then 1.5522 (low Sep.3).
GBP/USD propelled by data, risk appetite
Better-than-expected Services PMI in the UK during August boosted the pound, adding to the sustainability of the recovery in the British economy in the last periods. According to Lee Hardman, Currency Analyst at BTMU, “We doubt that a stronger UK economic recovery will prove enough to materially ease pound weakness in the year ahead given structural weakness resulting from still loose BoE policy and the UK’s elevated current account deficit as external financing conditions tighten”.
GBP/USD relevant level
The pair is now advancing 0.55% at 1.5643 with the next resistance at 1.5638 (high Aug.23) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17). On the downside, a breach of 1.5556 (low Sep.4) would open the door to 1.5548 (MA10d) and then 1.5522 (low Sep.3).