15 Oct 2013
GBP/USD stalling to recovery fully
FXstreet.com (London) - GBP/USD has climbed back from below 1.5920 and targets the 1.6000 handle, but has found supply to cap the pair at 1.5988.
It would appear the markets now feel comfortable with an imminent resolution to the US political situation, as the tail risk gets priced out. Attentions now turn to the details of the resolution and just how far down the road the ‘’can’’ can be kicked and how investors deal with the subsequent release of US data in the coming weeks. Beyond this the focus once again shifts towards the Fed and of course Yellen and continuation of QE/Tapering. From the calendar, for GBP, Research teams at TD Securities said CPI was a little stronger than expected at 2.7% Y/Y in Sept (mkt 2.6%), unchanged from August...”the focus will be on the unemployment rate, where analysts are split for tomorrow’s reading between looking for unchanged at 7.7% or another notch lower at 7.6%”.
GBP/USD Levels
The 20 DMA is 1.6063, the 50 DMA is 1.57.99 and the 200 DMA is 1.5476 RSI (14) reads 55.34. Supports are ascending from 1.5844, 1.5886, 1.5914 and 1.5950. Spot is currently 1.5973 while resistances are 1.5995, 1.6020 and 1.6055
It would appear the markets now feel comfortable with an imminent resolution to the US political situation, as the tail risk gets priced out. Attentions now turn to the details of the resolution and just how far down the road the ‘’can’’ can be kicked and how investors deal with the subsequent release of US data in the coming weeks. Beyond this the focus once again shifts towards the Fed and of course Yellen and continuation of QE/Tapering. From the calendar, for GBP, Research teams at TD Securities said CPI was a little stronger than expected at 2.7% Y/Y in Sept (mkt 2.6%), unchanged from August...”the focus will be on the unemployment rate, where analysts are split for tomorrow’s reading between looking for unchanged at 7.7% or another notch lower at 7.6%”.
GBP/USD Levels
The 20 DMA is 1.6063, the 50 DMA is 1.57.99 and the 200 DMA is 1.5476 RSI (14) reads 55.34. Supports are ascending from 1.5844, 1.5886, 1.5914 and 1.5950. Spot is currently 1.5973 while resistances are 1.5995, 1.6020 and 1.6055