28 Oct 2013
GBP/USD back to lows near 1.6140
FXstreet.com (Edinburgh) -The selling interest is back around the sterling on Monday, dragging the GBP/USD to session lows on sub-1.6140 levels.
GBP/USD intensifies correction
After the failed attempt to climb beyond 1.6210 during the European morning, the pair initiated a correction lower as the risk-off trade was creeping back into the markets. The pair is expected to attempt a consolidation patter ahead of the FOMC meeting due on Wednesday, although no major announcements are really expected. In light of last week’s UK GDP release, Lee Hardman, Currency Analyst at BTMU, observed, “The release of the Q3 GDP report on Friday confirmed that the pace of economic recovery in the UK gathered further momentum… Still the pound derived limited support from the report in the near-term highlighting that a more favourable growth outlook for the UK is now already discounted. In addition, the first BoE rate hike appears highly unlikely until at least 2015 given that the unemployment rate’s decline towards the 7.0% threshold is still likely to prove gradual ahead”.
GBP/USD levels to watch
At the moment the pair is losing 0.14% at 1.6142 and a break below 1.6138 (MA10d) would expose 1.6115 (low Oct.22). On the flip side, the initial resistance aligns at 1.6248 (high Oct.25) ahead of 1.6258 (high Oct.23) and then 1.6260 (high Oct.1).
GBP/USD intensifies correction
After the failed attempt to climb beyond 1.6210 during the European morning, the pair initiated a correction lower as the risk-off trade was creeping back into the markets. The pair is expected to attempt a consolidation patter ahead of the FOMC meeting due on Wednesday, although no major announcements are really expected. In light of last week’s UK GDP release, Lee Hardman, Currency Analyst at BTMU, observed, “The release of the Q3 GDP report on Friday confirmed that the pace of economic recovery in the UK gathered further momentum… Still the pound derived limited support from the report in the near-term highlighting that a more favourable growth outlook for the UK is now already discounted. In addition, the first BoE rate hike appears highly unlikely until at least 2015 given that the unemployment rate’s decline towards the 7.0% threshold is still likely to prove gradual ahead”.
GBP/USD levels to watch
At the moment the pair is losing 0.14% at 1.6142 and a break below 1.6138 (MA10d) would expose 1.6115 (low Oct.22). On the flip side, the initial resistance aligns at 1.6248 (high Oct.25) ahead of 1.6258 (high Oct.23) and then 1.6260 (high Oct.1).