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19 May 2014
GBP/USD is pressured down, 1.6800 is in sight
FXStreet (Moscow) - GBP/USD got under bearish pressure as European session is under way; the pair dropped from Asian high of 1.6833 to current levels of 1.6814 as AstraZeneka's rejection of Pfizer's latest bid was confirmed.
The pound may rebound
Too much sell-off out of nothing probably came to an end. We have already seen some rebound of the pair from the recently posted 1.6730 low. This week’s data may help the pair to continue the move higher, if the readings come out above expectations. Pay attention to inflation, retail sales, and Q1 GDP data as these are the needed pieces of the broad UK economy puzzle. The recent Quarterly Inflation Report confirmed the 2014 growth and inflation numbers at previous levels, thus, any evidence that the British economy is doing a bit better than the regulator expects, may trigger new wave of hopes for tightening, and new wave of interest to the pound.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6812, with support below at 1.6782, 1.6754, and 1.6724 with resistance above at 1.6840, 1.6870, and 1.6898. Hourly Moving Averages are largely mixed, with the 200SMA at 1.6793, and the daily 20EMA flat at 1.6826. Hourly RSI is bearish at 48.
The pound may rebound
Too much sell-off out of nothing probably came to an end. We have already seen some rebound of the pair from the recently posted 1.6730 low. This week’s data may help the pair to continue the move higher, if the readings come out above expectations. Pay attention to inflation, retail sales, and Q1 GDP data as these are the needed pieces of the broad UK economy puzzle. The recent Quarterly Inflation Report confirmed the 2014 growth and inflation numbers at previous levels, thus, any evidence that the British economy is doing a bit better than the regulator expects, may trigger new wave of hopes for tightening, and new wave of interest to the pound.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6812, with support below at 1.6782, 1.6754, and 1.6724 with resistance above at 1.6840, 1.6870, and 1.6898. Hourly Moving Averages are largely mixed, with the 200SMA at 1.6793, and the daily 20EMA flat at 1.6826. Hourly RSI is bearish at 48.