23 May 2014
GBP/USD testing lows around 1.6850
FXStreet (Edinburgh) - The sterling is following the selling mood as the risk-off trade gathers steam on Friday, taking the GBP/USD to challenge session lows in the mid-1.6800s.
GBP/USD down from 1.6920
The pair extends the correction lower from weekly tops around 1.6920 despite recent auspicious economic results in the UK economy. The increasing bid tone surrounding the greenback prevented spot from rising further, although it keeps the trade above the 1.6800 mark so far. According to Brian Martin, Senior European Strategist at ANZ, “It’s still too early for the Bank of England to raise rates, but sterling strength has a role to play in guiding a balanced recovery… We remain positive on the outlook for the pound against the AUD, NZD and Asian currencies in general. EUR/GBP can move lower still. Cable should test above 1.70”.
GBP/USD levels to watch
As of writing the pair is losing 0.18% at 1.6841 facing the next support at 1.6831 (low May 21) followed by 1.6802 (low May 20) and then 1.6784 (low May 16). On the other hand, a breakout of 1.6875 (high May 23) would open the door to 1.6917 (high May 22) and finally 1.6922 (high May 21).
GBP/USD down from 1.6920
The pair extends the correction lower from weekly tops around 1.6920 despite recent auspicious economic results in the UK economy. The increasing bid tone surrounding the greenback prevented spot from rising further, although it keeps the trade above the 1.6800 mark so far. According to Brian Martin, Senior European Strategist at ANZ, “It’s still too early for the Bank of England to raise rates, but sterling strength has a role to play in guiding a balanced recovery… We remain positive on the outlook for the pound against the AUD, NZD and Asian currencies in general. EUR/GBP can move lower still. Cable should test above 1.70”.
GBP/USD levels to watch
As of writing the pair is losing 0.18% at 1.6841 facing the next support at 1.6831 (low May 21) followed by 1.6802 (low May 20) and then 1.6784 (low May 16). On the other hand, a breakout of 1.6875 (high May 23) would open the door to 1.6917 (high May 22) and finally 1.6922 (high May 21).