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GBP/USD gearing up for 1.6600

FXstreet.com (Edinburgh) - The sterling is prolonging today’s bull run against the greenback, pushing the GBP/USD to the area of 1.6585/90.

GBP/USD supported around 1.6480

The pair is resuming last week’s upside, recovering part of the ground lost on Friday, where selling interest dragged spot from over 2-year peaks near 1.6670 to sub-1.6500 levels. Technically speaking, Senior FX Strategist Paul Robson at RBS, commented, “The daily charts are giving quicker signals and last week had negative divergence ahead of the fall back lower. However, that pullback lower must be take into consideration the prevailing overall uptrend – so keep watching the daily charts”.

GBP/USD key levels

The pair is now up 0.51% at 1.6586 and a breakout of 1.6615 (high Jan.23) would open the door to 1.6668 (2014 high Jan.24) and finally 1.6700 (psychological level). On the downside, the initial support aligns at 1.6452 (low Jan.22) ahead of 1.6400 (low Jan.21) and then 1.6396 (low Jan.20).

Flash: USD/CAD 1.0990/1.1010 major support; target at 1.1265 - TDS

Shaun Osbourne, Chief FX Strategist at TD Securities commented that the recent decline in the USD/CAD seems to be trying to stabilize now. Osbourne believes last week’s peak of 1.11 is a neat bull flag and affirms TDS continues to target USD/CAD at 1.1265.
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