19 Nov 2013
GBP/USD supported around 1.6100
FXstreet.com (Edinburgh) - The sterling is now testing session highs, pushing the GBP/USD near 1.6130, as the offered tone around the greenback seems to be gathering traction again.
GBP/USD focus on BoE minutes
The pair remains well bid above the 1.6100 handle ahead of tomorrow’s BoE minutes. Consensus in the FX community does not expect any major announcements or big bouts of volatility in the pair. However, a repetition of the neutral tone plus a unanimous vote pattern favouring leaving the status quo would be supportive of the GBP. Paul Robson, Senior FX Strategist at RBS, commented, “The two main areas of resistance noted where the outlook would change were above 1.6135 then negative to neutral, while above 1.6175 on a daily close turning positive. While to some extent that still remains the case, we think to be safer now it’s best to look at the range of the last couple of months here (1.59/1.6225) and say you really need a weekly close outside this before getting too sold on one particular direction”.
GBP/USD critical levels
At the moment the pair is advancing 0.05% at 1.6116 with the immediate resistance at 1.6163 (76.4% of 1.6258-1.5854) followed by 1.6207 (high Oct.28) and then 1.6248 (high Oct.25). On the flip side, a breakdown of 1.6048 (MA10d) would open the door to 1.5988 (low Nov.14) and then 1.5879 (low Nov.13).
GBP/USD focus on BoE minutes
The pair remains well bid above the 1.6100 handle ahead of tomorrow’s BoE minutes. Consensus in the FX community does not expect any major announcements or big bouts of volatility in the pair. However, a repetition of the neutral tone plus a unanimous vote pattern favouring leaving the status quo would be supportive of the GBP. Paul Robson, Senior FX Strategist at RBS, commented, “The two main areas of resistance noted where the outlook would change were above 1.6135 then negative to neutral, while above 1.6175 on a daily close turning positive. While to some extent that still remains the case, we think to be safer now it’s best to look at the range of the last couple of months here (1.59/1.6225) and say you really need a weekly close outside this before getting too sold on one particular direction”.
GBP/USD critical levels
At the moment the pair is advancing 0.05% at 1.6116 with the immediate resistance at 1.6163 (76.4% of 1.6258-1.5854) followed by 1.6207 (high Oct.28) and then 1.6248 (high Oct.25). On the flip side, a breakdown of 1.6048 (MA10d) would open the door to 1.5988 (low Nov.14) and then 1.5879 (low Nov.13).