20 Mar 2014
GBP/USD is attempting to reclaim the 1.65 handle
FXStreet (Guatemala) - GBP/USD is trying to recover from the daily lows when the pair fell back onto the 1.64 handle post FOMC yesterday.
Investec dealers explained that the scheduled Federal Reserve interest rate announcement yesterday yielded another $10 billion per month cut in QE operations, bringing the monthly total down to $55bn and also the removal of the 6.50% unemployment target which ushers in ‘fuzzy guidance’ much like the guidance adopted by the Bank of England last year. “This in itself was not particularly groundbreaking news but Yellen’s follow up comments were more hawkish than anticipated as she revealed that the US could raise interest rates as early as six months after QE ends, which triggered some market excitement and dragged GBP/USD over 1 cent lower within a matter of minutes down to the low 1.65’s”.
GBP/USD Levels
The 20 DMA is 1.6656, the 50 DMA is 1.6558 and the 200 DMA is 1.6025. RSI (14) reads 32.25. Supports are ascending from 1.6447, 1.6470, 1.6488. Spot is 1.6505 while resistances are 1.6541, 1.6587, 1.6615, 1.6655 and 1.6667.
Investec dealers explained that the scheduled Federal Reserve interest rate announcement yesterday yielded another $10 billion per month cut in QE operations, bringing the monthly total down to $55bn and also the removal of the 6.50% unemployment target which ushers in ‘fuzzy guidance’ much like the guidance adopted by the Bank of England last year. “This in itself was not particularly groundbreaking news but Yellen’s follow up comments were more hawkish than anticipated as she revealed that the US could raise interest rates as early as six months after QE ends, which triggered some market excitement and dragged GBP/USD over 1 cent lower within a matter of minutes down to the low 1.65’s”.
GBP/USD Levels
The 20 DMA is 1.6656, the 50 DMA is 1.6558 and the 200 DMA is 1.6025. RSI (14) reads 32.25. Supports are ascending from 1.6447, 1.6470, 1.6488. Spot is 1.6505 while resistances are 1.6541, 1.6587, 1.6615, 1.6655 and 1.6667.