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10 Feb 2014
GBP/USD flirting with 1.6420
FXStreet (Edinburgh) - The GBP/USD manages to follow through the 1.6400 handle on Monday, although it cannot gather steam to leave behind session peaks beyond 1.6420 so far.
GBP/USD flat, eyes on session highs
The pair is reverting the steep pullback to the 1.6250 region last week, ahead of the BoE’s Quarterly Inflation Report due on Wednesday and where market participants expect the current forward guidance to take centre stage. “We see an addition of explicit Bank Rate forecasts in a fan chart format, our base case, as one of the most dovish options available to the MPC, and thus we feel that GBP will trade softly through the release of the inflation report”, noted Brian Daingerfield and Paul Robson, Analysts at RBS.
GBP/USD key levels
At the moment the pair is flat at 1.6416 with the next resistance at 1.6432 (10-d MA) followed by 1.6449 (high Feb.3) and then 1.6452 (30-d MA). On the flip side, a break below 1.6390 (low Feb.10) would expose 1.6301 (low Feb.7).
GBP/USD flat, eyes on session highs
The pair is reverting the steep pullback to the 1.6250 region last week, ahead of the BoE’s Quarterly Inflation Report due on Wednesday and where market participants expect the current forward guidance to take centre stage. “We see an addition of explicit Bank Rate forecasts in a fan chart format, our base case, as one of the most dovish options available to the MPC, and thus we feel that GBP will trade softly through the release of the inflation report”, noted Brian Daingerfield and Paul Robson, Analysts at RBS.
GBP/USD key levels
At the moment the pair is flat at 1.6416 with the next resistance at 1.6432 (10-d MA) followed by 1.6449 (high Feb.3) and then 1.6452 (30-d MA). On the flip side, a break below 1.6390 (low Feb.10) would expose 1.6301 (low Feb.7).