Back
1 Apr 2014
GBP/USD is having hard time breaking below 1.6650 area
FXStreet (Moscow) - GBP/USD slid to 1.6640 low on weaker than expected PMI, but the support area around 1.6650/40 limited the move down.
PMI disappointed, but not significantly
British Markit/CIPS manufacturing PMI came out weaker than expected at 55.3 vs 56.7. It pressured the pound a bit, though the reaction was muted, as the index is still above historical average, and UK economy is still one of the leaders of GDP growth among G7. Besides, the comments of the BOE FPC that it will remain vigilant on housing market only reminded the market on the rising price pressure in this sector. Of course, it doesn’t necessarily mean raising interest rates in the short term, thus we expect further consolidation of the pair within narrow range of 1.6650-1.6680.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6653, with support below at 1.6621, 1.6579, and 1.6547 with resistance above at 1.6695, 1.6727, and 1.6769. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6559, and the daily 20EMA bullish at 1.6600. Hourly RSI is neutral at 55.
PMI disappointed, but not significantly
British Markit/CIPS manufacturing PMI came out weaker than expected at 55.3 vs 56.7. It pressured the pound a bit, though the reaction was muted, as the index is still above historical average, and UK economy is still one of the leaders of GDP growth among G7. Besides, the comments of the BOE FPC that it will remain vigilant on housing market only reminded the market on the rising price pressure in this sector. Of course, it doesn’t necessarily mean raising interest rates in the short term, thus we expect further consolidation of the pair within narrow range of 1.6650-1.6680.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6653, with support below at 1.6621, 1.6579, and 1.6547 with resistance above at 1.6695, 1.6727, and 1.6769. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6559, and the daily 20EMA bullish at 1.6600. Hourly RSI is neutral at 55.