Back
9 Sep 2013
GBP/USD capped by 1.5690
FXstreet.com (Edinburgh) -The underlying bullish context around the sterling is lifting the GBP/USD to the area of 1.5690 on Monday, closer to the key resistance band at 1.5700/50.
GBP/USD improves on BoE, UK fundamentals
The pair is now advancing for the second consecutive week, propped up by the scepticism surrounding the BoE’s forward guidance, resilient yields in the UK money markets and the recent confirmation by solid data that the British economy continues to heal. The upcoming release of the ILO Unemployment Rate and the Claimant Count Change for the month of August have grown in importance since BoE’s Carney adopted a 7.0% threshold in the jobless rate as the line in the sand to start thinking about hiking rates. Prior surveys expect the jobless rate to stay put at 7.8% and the claimant change to drop by 21.2K. In the opinion of Strategistst G.Yu and G.Berry at UBS, “The recent upside opens the doors to test the strong resistance range at 1.5718/50. Support is at 1.5522 ahead of 1.5423”. It is worth noting that the Swiss bank holds a bullish bias on the pair.
GBP/USD levels to watch
The pair is now up 0.32% at 1.5682 and a surpass of 1.5718 (high Aug.21) would bring 1.5753 (high Jun.17). On the downside, the initial support lines up at 1.5603 (low Sep.6) ahead of 1.5567 (MA10d) and then 1.5564 (low Sep.6).
GBP/USD improves on BoE, UK fundamentals
The pair is now advancing for the second consecutive week, propped up by the scepticism surrounding the BoE’s forward guidance, resilient yields in the UK money markets and the recent confirmation by solid data that the British economy continues to heal. The upcoming release of the ILO Unemployment Rate and the Claimant Count Change for the month of August have grown in importance since BoE’s Carney adopted a 7.0% threshold in the jobless rate as the line in the sand to start thinking about hiking rates. Prior surveys expect the jobless rate to stay put at 7.8% and the claimant change to drop by 21.2K. In the opinion of Strategistst G.Yu and G.Berry at UBS, “The recent upside opens the doors to test the strong resistance range at 1.5718/50. Support is at 1.5522 ahead of 1.5423”. It is worth noting that the Swiss bank holds a bullish bias on the pair.
GBP/USD levels to watch
The pair is now up 0.32% at 1.5682 and a surpass of 1.5718 (high Aug.21) would bring 1.5753 (high Jun.17). On the downside, the initial support lines up at 1.5603 (low Sep.6) ahead of 1.5567 (MA10d) and then 1.5564 (low Sep.6).