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18 Sep 2014
GBP/USD losing grip of 1.64 handle
FXStreet (Guatemala) - GBP/USD is trading at 1.6366, up 0.56% on the day, having posted a daily high at 1.6411 and low at 1.6247.
GBP/USD back off the highs made earlier through the 1.64 handle and traders in the ‘No’ camp might be encouraged that there are opportunities with a cheaper pound ahead of a possibility to cash in at pre Scottish referendum levels on the upside but on the other hand it is still a very close call on the final day of voting and the pair is likely to be reacting and indeed volatile to a decision either way due to the uncertainty that will now linger for considerable time. From the calendar for the UK, year-on-year UK Retail Sales results read as 3.9% in August, compared with the 2.5% increase in July and missing forecasts of +4.1%.
Greenback best performer
With Yellen speaking earlier, we didn’t get anything new than what we had already known from yesterday’s FOMC statement, but the fact that the market is anticipating the Fed to start hiking rates next year has been a driving force behind the recovery in the USD in recent months, as noted by
Jane Foley, Senior Currency Strategist at Rabobank. She explained that the greenback can currently claim to be the best performing developed world currency on both a 3 and a 1 mth view.
GBP/USD noteworthy levels
Spot is presently trading at 1.6367, and next resistance can be seen at 1.6388 (Daily 20 SMA), 1.6405 (Daily Classic R2), 1.6411 (Daily High), 1.6426 (Weekly Classic R2) and 1.6451 (Daily Classic R3). Support below can be found at 1.6360 (Yesterday's High), 1.6347 (Weekly Classic R1), 1.6340 (Daily Classic R1), 1.6324 (Hourly 20 EMA) and 1.6294 (Daily Classic PP).
GBP/USD back off the highs made earlier through the 1.64 handle and traders in the ‘No’ camp might be encouraged that there are opportunities with a cheaper pound ahead of a possibility to cash in at pre Scottish referendum levels on the upside but on the other hand it is still a very close call on the final day of voting and the pair is likely to be reacting and indeed volatile to a decision either way due to the uncertainty that will now linger for considerable time. From the calendar for the UK, year-on-year UK Retail Sales results read as 3.9% in August, compared with the 2.5% increase in July and missing forecasts of +4.1%.
Greenback best performer
With Yellen speaking earlier, we didn’t get anything new than what we had already known from yesterday’s FOMC statement, but the fact that the market is anticipating the Fed to start hiking rates next year has been a driving force behind the recovery in the USD in recent months, as noted by
Jane Foley, Senior Currency Strategist at Rabobank. She explained that the greenback can currently claim to be the best performing developed world currency on both a 3 and a 1 mth view.
GBP/USD noteworthy levels
Spot is presently trading at 1.6367, and next resistance can be seen at 1.6388 (Daily 20 SMA), 1.6405 (Daily Classic R2), 1.6411 (Daily High), 1.6426 (Weekly Classic R2) and 1.6451 (Daily Classic R3). Support below can be found at 1.6360 (Yesterday's High), 1.6347 (Weekly Classic R1), 1.6340 (Daily Classic R1), 1.6324 (Hourly 20 EMA) and 1.6294 (Daily Classic PP).