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2 Dec 2014
GBP/USD surviving above 1.5700
FXStreet (Edinburgh) - Despite today’s decline, GBP/USD is managing well to keep the trade above the 1.5700 handle so far.
GBP/USD lower on USD strength
Markets woke up biased towards the greenback on Tuesday, putting the recent upside in the risk-associated assets to the test. The pair is no exception, declining from the 1.5760/40 band to a brief visit to the 1.5700 neighbourhood. Extreme light UK docket today, with only the Construction PMI due later (61.0 exp.) ahead of tomorrow’s more significant Services PMI and Thursday’s BoE MPC meeting. In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact”.
GBP/USD levels to watch
The pair is now retreating 0.12% at 1.5719 with the next support at 1.5585 (2014 low Dec.1) ahead of 1.5564 (low Sep.6 2013) and then 1.5556 (low Sep.4 2013). On the upside, a break above 1.5760 (21-d MA) would target 1.5762 (high Dec.1) en route to 1.5826 (high Nov.27).
GBP/USD lower on USD strength
Markets woke up biased towards the greenback on Tuesday, putting the recent upside in the risk-associated assets to the test. The pair is no exception, declining from the 1.5760/40 band to a brief visit to the 1.5700 neighbourhood. Extreme light UK docket today, with only the Construction PMI due later (61.0 exp.) ahead of tomorrow’s more significant Services PMI and Thursday’s BoE MPC meeting. In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Key resistance remains at 1.6184, the October 21 high. While capped here, an overall negative bias remains intact”.
GBP/USD levels to watch
The pair is now retreating 0.12% at 1.5719 with the next support at 1.5585 (2014 low Dec.1) ahead of 1.5564 (low Sep.6 2013) and then 1.5556 (low Sep.4 2013). On the upside, a break above 1.5760 (21-d MA) would target 1.5762 (high Dec.1) en route to 1.5826 (high Nov.27).