19 Aug 2015
GBP/USD bears await the FOMC minutes
FXStreet (Guatemala) - GBP/USD is currently trading 1.5657 with a high of 1.5698 and a low of 1.5634.
GBP/USD is lined up ahead of the FOMC minutes after a strong bid from 1.5560 territory and up to the test the 1.57 handle yesterday. The major has seance settled back with bulls defending the 1.5640 support zone, which is a familiar area of demand on failures of previous advances higher.
The UK has been under the spot-light with the CPI's supporting the chatter of a BoE rate hike in 2016 with some economists suggesting the economy is prime for a hike as early as the last quarter for this year. The inflation was stronger than expected yesterday, with the CPI increasing to a high 0.1% Y/Y from a low 0.0% with an upward trend in recount months of the monthly inflation since June 2014 which remains in line with the MPC's foresight and target of 2%.
The CPI's for the US today were in line with 0.2% on a yearly basis, while core prices – excluding Food and Energy costs – came in at 1.8% on a year to July. We now await the FOMC and markets will be looking for signals for a September lit off.
GBP/USD levels
Technically, the 200 week moving average at 1.5864 would be a target if the barrier at 1.5720 and 1.5800 psychological level is taken out and that would likely expose the 1.5930 June highs. Failures at the upside open the 1.5424 current August lows and the 200 day moving average at 1.5371.
GBP/USD is lined up ahead of the FOMC minutes after a strong bid from 1.5560 territory and up to the test the 1.57 handle yesterday. The major has seance settled back with bulls defending the 1.5640 support zone, which is a familiar area of demand on failures of previous advances higher.
The UK has been under the spot-light with the CPI's supporting the chatter of a BoE rate hike in 2016 with some economists suggesting the economy is prime for a hike as early as the last quarter for this year. The inflation was stronger than expected yesterday, with the CPI increasing to a high 0.1% Y/Y from a low 0.0% with an upward trend in recount months of the monthly inflation since June 2014 which remains in line with the MPC's foresight and target of 2%.
The CPI's for the US today were in line with 0.2% on a yearly basis, while core prices – excluding Food and Energy costs – came in at 1.8% on a year to July. We now await the FOMC and markets will be looking for signals for a September lit off.
GBP/USD levels
Technically, the 200 week moving average at 1.5864 would be a target if the barrier at 1.5720 and 1.5800 psychological level is taken out and that would likely expose the 1.5930 June highs. Failures at the upside open the 1.5424 current August lows and the 200 day moving average at 1.5371.