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27 Jan 2014
We may see the sunrise of GBP/USD soon – back above 1.66
FXstreet.com (Moscow) - GBP/USD found strong support at 1.6480 during early trades, thus, showing mild rebound to 1.6510 area after reaching 1.6473 low in the Asian morning.
Ain’t no weakness for the Pound
The Pound acted according to our scenario described on Friday. Mark Carney during his speech in Davos again explained the markets that the monetary officials are reluctant to reduce accommodation. The investors understood that the chairman was not going to adjust the policy in the short/medium term, and sold the pair to 3-days low at 1.6473. Nevertheless, we don’t expect the Pound weakness to last for long, especially considering the nearing UK GDP release which may prove the growth acceleration of the British economy. Thus, we expect the pair rebound with initial target at 1.6550 resistance level followed by 1.6621.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6550, with support below at 1.6430 (S1), 1.6359 (S2) and 1.6239 (S3), with resistance above at 1.6621 (R1), 1.6741 (R2), and 1.6812 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 1.6463, and the daily 20EMA bullish at 1.6457. Hourly RSI is neutral at 37.
Ain’t no weakness for the Pound
The Pound acted according to our scenario described on Friday. Mark Carney during his speech in Davos again explained the markets that the monetary officials are reluctant to reduce accommodation. The investors understood that the chairman was not going to adjust the policy in the short/medium term, and sold the pair to 3-days low at 1.6473. Nevertheless, we don’t expect the Pound weakness to last for long, especially considering the nearing UK GDP release which may prove the growth acceleration of the British economy. Thus, we expect the pair rebound with initial target at 1.6550 resistance level followed by 1.6621.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6550, with support below at 1.6430 (S1), 1.6359 (S2) and 1.6239 (S3), with resistance above at 1.6621 (R1), 1.6741 (R2), and 1.6812 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 1.6463, and the daily 20EMA bullish at 1.6457. Hourly RSI is neutral at 37.