29 Oct 2013
GBP/USD pierced 1.6100
FXstreet.com (Edinburgh) - The selling pressure is now accelerating around the sterling, dragging the GBP/USD below the 1.6100 handle on Tuesday.
GBP/USD looking to stabilize around 1.6100
After a new unsuccessful attempt to follow through the area of 1.6260 last week, the pair sparked a decline alongside a better momentum of the greenback and further upside in the EUR/GBP with some key resistance on sight. Lee Hardman, Currency Analyst at BTMU, noted, “Fundamentally the pound is being undermined by the market moving to delay the expected timing and scale of monetary tightening from the BoE… The sharp decline in UK yields continues to highlight that they remain tightly linked to developments in US yields with delayed Fed QE tapering expectations also serving to undermine the pound in the near-term, even as the UK economy continues to remain in a robust recovery phase”.
GBP/USD key levels
The pair is now losing 0.31% at 1.6090 and a break below 1.6084 (MA30d) would aim for the psychological level at 1.6000. On the upside, the initial barrier lies at 1.6207 (high Oct.28) followed by 1.6248 (high Oct.25) and then 1.6258 (high Oct.23).
GBP/USD looking to stabilize around 1.6100
After a new unsuccessful attempt to follow through the area of 1.6260 last week, the pair sparked a decline alongside a better momentum of the greenback and further upside in the EUR/GBP with some key resistance on sight. Lee Hardman, Currency Analyst at BTMU, noted, “Fundamentally the pound is being undermined by the market moving to delay the expected timing and scale of monetary tightening from the BoE… The sharp decline in UK yields continues to highlight that they remain tightly linked to developments in US yields with delayed Fed QE tapering expectations also serving to undermine the pound in the near-term, even as the UK economy continues to remain in a robust recovery phase”.
GBP/USD key levels
The pair is now losing 0.31% at 1.6090 and a break below 1.6084 (MA30d) would aim for the psychological level at 1.6000. On the upside, the initial barrier lies at 1.6207 (high Oct.28) followed by 1.6248 (high Oct.25) and then 1.6258 (high Oct.23).