11 Apr 2014
GBP/USD has two reasons to slide down
FXStreet (Moscow) - GBP/USD edged lower from multi-year high posted on Wednesday reaching 1.6770 area but rebounding to 1.6780 by the moment.
Time to fix it
Since the British economic calendar is empty, and the pair is in corrective mood after it reached February highs, we expect further drift lower based on two factors. First, the cable bulls already has got impressive profits recently, and its probably the time to fix it before the weekend. And second, the US data is looming, and although Thursday positive numbers were ignored by the market, this time may be different. US PPI is of key interest given the market obsession with inflation indicators. If the index comes out above expectations, wait for the move lower with initial target at 1.6719 support level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6787, with support below at 1.6752, 1.6719, and 1.6684 with resistance above at 1.6820, 1.6855, and 1.6888. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6667, and the daily 20EMA bullish at 1.6647. Hourly RSI is bearish at 45.
Time to fix it
Since the British economic calendar is empty, and the pair is in corrective mood after it reached February highs, we expect further drift lower based on two factors. First, the cable bulls already has got impressive profits recently, and its probably the time to fix it before the weekend. And second, the US data is looming, and although Thursday positive numbers were ignored by the market, this time may be different. US PPI is of key interest given the market obsession with inflation indicators. If the index comes out above expectations, wait for the move lower with initial target at 1.6719 support level.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6787, with support below at 1.6752, 1.6719, and 1.6684 with resistance above at 1.6820, 1.6855, and 1.6888. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6667, and the daily 20EMA bullish at 1.6647. Hourly RSI is bearish at 45.