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14 Aug 2013
GBP/USD ruptures 1.5500 as rally points higher
FXstreet.com (New York) - The GBP/USD foreign exchange rate surged higher Wednesday during US trading after a busy morning in Europe.
In the United States, the Producer Price Index (YoY) came in at +2.1% in July, missing expectations of +2.4%. Moreover, the Producer Price Index ex Food & Energy (YoY) grew only +1.2% in July, against estimates calling for +1.4%. Earlier today however the focus centered around the BoE – the Claimant Count Change (July) came in at -29.2k, against expectations of -15.0k.
Technically speaking, the GBP/USD is now trading at 1.5524, securing an advance of +0.48% above its opening, though ultimately below its recent highs at 1.5541. Previously, resistance at 1.5538 helped temporarily slow the advance, and this figure now stands as the primary figure to overtake on the upside (earlier resistance at 1.5498 was broken), calculates the Mataf.net analyst team.
GBP/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “The GBP/USD reached the 1.5432 July 25 high as expected. This level acted as short-term support on Tuesday. While the 200-day MA at 1.5526 caps, further weakness remains in store, though. Having said that, since last week’s rally looks directional we still have to allow for a stab to the 1.5605/58 resistance area unfolding. It consists of the May peak and uptrend channel resistance line. If overcome, a challenge of the 1.5752/55 June high and the 200-week MA could still be seen. The GBP/USD will remain overall bid while trading above the two-month uptrend channel line at 1.5233.”
In the United States, the Producer Price Index (YoY) came in at +2.1% in July, missing expectations of +2.4%. Moreover, the Producer Price Index ex Food & Energy (YoY) grew only +1.2% in July, against estimates calling for +1.4%. Earlier today however the focus centered around the BoE – the Claimant Count Change (July) came in at -29.2k, against expectations of -15.0k.
Technically speaking, the GBP/USD is now trading at 1.5524, securing an advance of +0.48% above its opening, though ultimately below its recent highs at 1.5541. Previously, resistance at 1.5538 helped temporarily slow the advance, and this figure now stands as the primary figure to overtake on the upside (earlier resistance at 1.5498 was broken), calculates the Mataf.net analyst team.
GBP/USD strategic bias
According to Karen Jones, an analyst at Commerzbank, “The GBP/USD reached the 1.5432 July 25 high as expected. This level acted as short-term support on Tuesday. While the 200-day MA at 1.5526 caps, further weakness remains in store, though. Having said that, since last week’s rally looks directional we still have to allow for a stab to the 1.5605/58 resistance area unfolding. It consists of the May peak and uptrend channel resistance line. If overcome, a challenge of the 1.5752/55 June high and the 200-week MA could still be seen. The GBP/USD will remain overall bid while trading above the two-month uptrend channel line at 1.5233.”