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2 Oct 2013
GBP/USD heading to 1.6310?
FXstreet.com (London) - GBP/USD is testing the week’s highs towards 1.6260 on the opening bell.
For the UK, Construction PMI slipped from 59.1 to 58.9, printing below consensus expectations for 59.5, and our forecast of 60, said research teams at TD Securities. "However, it remains very high and points to solid construction momentum going forward". Meanwhile, on Capital Hill, the pressure is mounting still and keeping the dollar on the back-foot. Investec Bank research teams commented on the situation, “Treasury Secretary Jack Lew wrote to Congress informing it that the final extraordinary measures to avoid hitting the debt ceiling were underway. The deadline for reaching the ceiling is 17 October, although this could be a little further away if the government shutdown lasts some time. The Republicans offered hope that the shutdown may be short-lived by making some minor concessions, but the danger is that a compromise is reached that simply results in the issues being rolled into the fight over the debt ceiling limit. Market reaction to the shutdown has been mixed, with the S&P rising and the USD earning a brief respite from the selling pressure. However we expect political pressure to bring about a resolution sooner rather than later”.
GBP/USD Levels
The 20 DMA is 1.5922, the 50 DMA is 1.5650, the 200 DMA is 1.5481. RSI (14) 50.90. Supports are ascending from 1.6087, 1.6100, 1.6150, 1.6160, and 1.6184. Spot is currently 1.6246 while resistances are 1.6260, 1.6310 and 1.6380.
For the UK, Construction PMI slipped from 59.1 to 58.9, printing below consensus expectations for 59.5, and our forecast of 60, said research teams at TD Securities. "However, it remains very high and points to solid construction momentum going forward". Meanwhile, on Capital Hill, the pressure is mounting still and keeping the dollar on the back-foot. Investec Bank research teams commented on the situation, “Treasury Secretary Jack Lew wrote to Congress informing it that the final extraordinary measures to avoid hitting the debt ceiling were underway. The deadline for reaching the ceiling is 17 October, although this could be a little further away if the government shutdown lasts some time. The Republicans offered hope that the shutdown may be short-lived by making some minor concessions, but the danger is that a compromise is reached that simply results in the issues being rolled into the fight over the debt ceiling limit. Market reaction to the shutdown has been mixed, with the S&P rising and the USD earning a brief respite from the selling pressure. However we expect political pressure to bring about a resolution sooner rather than later”.
GBP/USD Levels
The 20 DMA is 1.5922, the 50 DMA is 1.5650, the 200 DMA is 1.5481. RSI (14) 50.90. Supports are ascending from 1.6087, 1.6100, 1.6150, 1.6160, and 1.6184. Spot is currently 1.6246 while resistances are 1.6260, 1.6310 and 1.6380.