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19 Aug 2013
GBP/USD eyes 1.5700 and beyond
FXstreet.com (Edinburgh) -The sterling is trading firmer at the beginning of the week, driving the GBP/USD to 9-week highs just beyond 1.5670.
GBP/USD extends the upside
The pair is trying once again to reach June tops in the 1.5740/50 band, after hitting ytd lows around 1.4810 in early July and closing with gains in six out of the last seven weeks so far. The pound has benefited recently by the less dovish than expected tone from the BoE, and the unanimous vote against further stimulus remove that option in the very near term at least, giving extra support to the currency. “Support around 1.5395/1.5400 held and at this stage the rally in GBP/USD seems to have the wind behind it. We would not fight that until we see a reversal pattern or signal. However, as we approach/enter the 61.8% to 76.4% retracement area, this is where the sellers’ stronger armoury should be. We would expect this area (1.5750-1.5960) to cap the rally over the coming weeks”.
GBP/USD key levels
As of writing the pair is up 0.22% at 1.5655 and a surpass of 1.5678 (high Jun.19) would expose 1.5723 (high Jun.18) and then 1.5753 (high Jun.17). On the flip side, support levels align at 1.5608 (low Aug.16) followed by 1.5574 (high Aug.8) and then 1.5522 (MA200d).
GBP/USD extends the upside
The pair is trying once again to reach June tops in the 1.5740/50 band, after hitting ytd lows around 1.4810 in early July and closing with gains in six out of the last seven weeks so far. The pound has benefited recently by the less dovish than expected tone from the BoE, and the unanimous vote against further stimulus remove that option in the very near term at least, giving extra support to the currency. “Support around 1.5395/1.5400 held and at this stage the rally in GBP/USD seems to have the wind behind it. We would not fight that until we see a reversal pattern or signal. However, as we approach/enter the 61.8% to 76.4% retracement area, this is where the sellers’ stronger armoury should be. We would expect this area (1.5750-1.5960) to cap the rally over the coming weeks”.
GBP/USD key levels
As of writing the pair is up 0.22% at 1.5655 and a surpass of 1.5678 (high Jun.19) would expose 1.5723 (high Jun.18) and then 1.5753 (high Jun.17). On the flip side, support levels align at 1.5608 (low Aug.16) followed by 1.5574 (high Aug.8) and then 1.5522 (MA200d).