6 Feb 2014
GBP/USD claiming back 1.63 territory
FXStreet (Guatemala) - GBP/USD is better bid overall post the BoE today, reaching a high of 1.6329.
The BoE rate decision was unlikely to see any change to rates or QE and there was no additional statement. Investec dealers noted that yesterday’s UK services PMI came in a little weaker than expected, edging lower to 58.3 against an expectation of 59.0 and Investec forecasts of 58.8. Even though a print above 50.0 represents expansion in the sector, this number is actually the lowest reading since June. “A rally higher in GBUSD to 1.6340 swiftly followed the release, before a move back to 1.6260 area where we spent the rest of the day in a 1.6250-1.6300 zone. As the currency pair becomes settled in this range, it’s becoming more evident that Sterling is struggling to sustain rallies”.
GBP/USD Levels
The 20 DMA is 1.6456, the 50 DMA is 1.6418 and the 200 DMA is 1.5832. Supports are ascending from 1.6165, 1.6198,1.6220, 1.6252, 1.6307. Spot is 1.6325 while resistances are 1.6366,1.6411 and 1.6427.
The BoE rate decision was unlikely to see any change to rates or QE and there was no additional statement. Investec dealers noted that yesterday’s UK services PMI came in a little weaker than expected, edging lower to 58.3 against an expectation of 59.0 and Investec forecasts of 58.8. Even though a print above 50.0 represents expansion in the sector, this number is actually the lowest reading since June. “A rally higher in GBUSD to 1.6340 swiftly followed the release, before a move back to 1.6260 area where we spent the rest of the day in a 1.6250-1.6300 zone. As the currency pair becomes settled in this range, it’s becoming more evident that Sterling is struggling to sustain rallies”.
GBP/USD Levels
The 20 DMA is 1.6456, the 50 DMA is 1.6418 and the 200 DMA is 1.5832. Supports are ascending from 1.6165, 1.6198,1.6220, 1.6252, 1.6307. Spot is 1.6325 while resistances are 1.6366,1.6411 and 1.6427.