1 May 2014
GBP/USD looks to recover 1.6900
FXStreet (Edinburgh) - After dipping to the area of 1.6880, the GBP/USD is now attempting to regain the key 1.6900 handle.
GBP/USD in multi-year highs
The risk sentiment remains unchanged on Thursday despite the key US ISM Manufacturing bettered expectations during April, printing 54.9 vs. 54.3 forecasted. Positive data from UK home prices gauged by Nationwide and a solid reading from the manufacturing PMI are bolstering the current GBP upside to 4,5-years highs. Camilla Sutton, Chief FX Strategist at Scotiabank, assessed, “Inflation in the UK has fallen from 5.2% y/y in late 2011 to 1.6% today; this drop has relieved some of the pressure on the BoE; however as housing prices rise and the data suggest a building recovery, Governor Carney will likely prove eager to hike interest rates to fend off future inflation and financial stability risks”.
GBP/USD levels to consider
At the moment the pair is advancing 0.10% at 1.6891 with the initial hurdle at 1.7000 (psychological level) followed by 1.7044 (high Aug.5 2008) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6870 (low May 1) would target 1.6805 (low Apr.30) en route of 1.6792 (low Apr.29).
GBP/USD in multi-year highs
The risk sentiment remains unchanged on Thursday despite the key US ISM Manufacturing bettered expectations during April, printing 54.9 vs. 54.3 forecasted. Positive data from UK home prices gauged by Nationwide and a solid reading from the manufacturing PMI are bolstering the current GBP upside to 4,5-years highs. Camilla Sutton, Chief FX Strategist at Scotiabank, assessed, “Inflation in the UK has fallen from 5.2% y/y in late 2011 to 1.6% today; this drop has relieved some of the pressure on the BoE; however as housing prices rise and the data suggest a building recovery, Governor Carney will likely prove eager to hike interest rates to fend off future inflation and financial stability risks”.
GBP/USD levels to consider
At the moment the pair is advancing 0.10% at 1.6891 with the initial hurdle at 1.7000 (psychological level) followed by 1.7044 (high Aug.5 2008) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6870 (low May 1) would target 1.6805 (low Apr.30) en route of 1.6792 (low Apr.29).