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28 Nov 2013
GBP/USD warming up for 1.6380?
FXstreet.com (Edinburgh) - The sterling keeps pushing higher on Thursday, lifting the GBP/USD to the proximities of 1.6350 and closer to ytd peaks around 1.6380.
GBP/USD in 4-month highs
The GBP rally is nothing less than impressive, closing with gains every week of November and extending the advance from July troughs around the 1.4800 handle. The strong recovery in the UK economy and market expectations of a sooner-than-expected rate hike by the BoE have been fuelling the upside. In light of today’s Financial Stability Report and Governor Carney’s speech, Analyst James Knightley at ING commented, “While we suspect that the Bank of England will be early in raising rates (1Q15 is our forecast) we doubt that there will be a series of aggressive moves. Households remain heavily indebted and are likely to be very sensitive to interest rate increases”.
GBP/USD levels to watch
As of writing the pair is up 0.43% at 1.6348 with the immediate resistance at 1.6380 (2013 high Jan.2) followed by 1.6400 (psychological level) and then 1.6421 (high Aug.30 2011). On the flip side, a breakdown of 1.6277 (low Nov.28) would open the door to 1.6198 (low Nov.27) and finally 1.6185 (MA10d).
GBP/USD in 4-month highs
The GBP rally is nothing less than impressive, closing with gains every week of November and extending the advance from July troughs around the 1.4800 handle. The strong recovery in the UK economy and market expectations of a sooner-than-expected rate hike by the BoE have been fuelling the upside. In light of today’s Financial Stability Report and Governor Carney’s speech, Analyst James Knightley at ING commented, “While we suspect that the Bank of England will be early in raising rates (1Q15 is our forecast) we doubt that there will be a series of aggressive moves. Households remain heavily indebted and are likely to be very sensitive to interest rate increases”.
GBP/USD levels to watch
As of writing the pair is up 0.43% at 1.6348 with the immediate resistance at 1.6380 (2013 high Jan.2) followed by 1.6400 (psychological level) and then 1.6421 (high Aug.30 2011). On the flip side, a breakdown of 1.6277 (low Nov.28) would open the door to 1.6198 (low Nov.27) and finally 1.6185 (MA10d).