24 Mar 2014
GBP/USD testing lows near 1.6470
FXStreet (Edinburgh) - The sterling is now following its European peer, pushing the GBP/USD to challenge session lows in the 1.6475/70 region.
GBP/USD focus on CPI
Interest week for the sterling, as inflation figures are due tomorrow - with consensus expecting consumer prices to have advanced at an annual pace of 1.7% during February – followed by Retail Sales (Thursday) and Q4 GDP figures on Friday (0.7% QoQ). In the meantime, spot continues to drift lower from early March peaks near 1.6800 the figure. “The 5-day moving average crossed below the 20-day on March 12. It has approached a key retracement objective near $1.6470. This will be an important area in the coming sessions. A convincing break may give it the momentum to cut through the 100-day average which is near $1.6425 and target the $1.6300-50 area. However, we are more inclined to see sterling's recent downdraft as primarily a technical correction and start of a bear trend”, observed BBH Global Currency Strategy Team.
GBP/USD levels to watch
The pair is now losing 0.04% at 1.6482 and a break below 1.6453 (38.2% of 1.5854-1/6823) would open the door to 1.6425 (low Feb.12) and then 1.6392 (low Feb.11). On the upside, the immediate resistance lines up at 1.6520 (high Mar.21) ahead of 1.6550 (55-d MA) and finally 1.6570 (high Mar.20).
GBP/USD focus on CPI
Interest week for the sterling, as inflation figures are due tomorrow - with consensus expecting consumer prices to have advanced at an annual pace of 1.7% during February – followed by Retail Sales (Thursday) and Q4 GDP figures on Friday (0.7% QoQ). In the meantime, spot continues to drift lower from early March peaks near 1.6800 the figure. “The 5-day moving average crossed below the 20-day on March 12. It has approached a key retracement objective near $1.6470. This will be an important area in the coming sessions. A convincing break may give it the momentum to cut through the 100-day average which is near $1.6425 and target the $1.6300-50 area. However, we are more inclined to see sterling's recent downdraft as primarily a technical correction and start of a bear trend”, observed BBH Global Currency Strategy Team.
GBP/USD levels to watch
The pair is now losing 0.04% at 1.6482 and a break below 1.6453 (38.2% of 1.5854-1/6823) would open the door to 1.6425 (low Feb.12) and then 1.6392 (low Feb.11). On the upside, the immediate resistance lines up at 1.6520 (high Mar.21) ahead of 1.6550 (55-d MA) and finally 1.6570 (high Mar.20).