16 Jun 2014
GBP/USD extends the correction lower
FXStreet (Edinburgh) - The sterling is now intensifying its decline from multi-year highs beyond 1.7000 the figure, dragging the GBP/USD to session lows around 1.6960.
GBP/USD boosted by Carney, rate expectations
The strength in the GBP is following last week’s comments by BoE’s M.Carney and recent appreciations by Deputy Governor Bean, leaving the door open for a rate hike sooner than market expectations. After hitting levels last seen in 2009 around 1.7010, spot gave away earlier gains and returned to the 1.6960/65 band, or intraday lows. “Expect the pair to continue to push the envelope on the upside pending further news flow form the FOMC and BOE MPC minutes later this week... Initial resistance is expected at 1.7000 while any capitulation below 1.6900 may see a retracement back towards 1.6840”, observed Emmanuel Ng, FX Strategist at OCBC Bank.
GBP/USD levels to watch
The pair is now losing 0.02% at 1.6965 with the initial support at 1.6923 (low Jun.13) ahead of 1.6900 (psychological level) and finally 1.6842 (daily cloud top). On the upside, a breakout of 1.7011 (2014 high Jun.16) would target 1.7044 (high Aug.5 2009) en route to 1.7100 (psychological level).
GBP/USD boosted by Carney, rate expectations
The strength in the GBP is following last week’s comments by BoE’s M.Carney and recent appreciations by Deputy Governor Bean, leaving the door open for a rate hike sooner than market expectations. After hitting levels last seen in 2009 around 1.7010, spot gave away earlier gains and returned to the 1.6960/65 band, or intraday lows. “Expect the pair to continue to push the envelope on the upside pending further news flow form the FOMC and BOE MPC minutes later this week... Initial resistance is expected at 1.7000 while any capitulation below 1.6900 may see a retracement back towards 1.6840”, observed Emmanuel Ng, FX Strategist at OCBC Bank.
GBP/USD levels to watch
The pair is now losing 0.02% at 1.6965 with the initial support at 1.6923 (low Jun.13) ahead of 1.6900 (psychological level) and finally 1.6842 (daily cloud top). On the upside, a breakout of 1.7011 (2014 high Jun.16) would target 1.7044 (high Aug.5 2009) en route to 1.7100 (psychological level).