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3 Apr 2014
GBP/USD capped by 1.6660
FXStreet (Edinburgh) - The sterling is trading on a good mood on Thursday, pushing the GBP/USD to test Wednesday’s peaks around 1.6660 overnight.
GBP/USD boosted by Carney, eyes on PMI
The pound saw its demand boosted by Governor Carney’s comments hinting at the likelihood of higher rates by May 2015, pushing the pair to another test of the 1.6660/65 band. Ahead in the day, the more relevant services PMI is due in the UK economy, with consensus expecting the indicator to come a tad lower in March, 58.1 vs. February’s 58.2. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, the short term technicals remain mixed “providing very few near term signals as the currency trades in a relative tight multi-month range. Support lies at the 50-day MA at 1.6586; while resistance lies at the recent high of 1.6684 followed by the multi-year closing high of 1.6747 (Feb.14, 2014)”.
GBP/USD levels to watch
At the moment the pair is advancing 0.11% at 1.6644 with the initial resistance at 1.6665 (high Apr.2) followed by 1.6684 (high Mar.31) and finally 1.6719 (high Mar.13). On the flip side, a breakdown of 1.6620 (daily cloud top) would target 1.6613 (low Mar.31) en route to 1.6599 (low Mar.28).
GBP/USD boosted by Carney, eyes on PMI
The pound saw its demand boosted by Governor Carney’s comments hinting at the likelihood of higher rates by May 2015, pushing the pair to another test of the 1.6660/65 band. Ahead in the day, the more relevant services PMI is due in the UK economy, with consensus expecting the indicator to come a tad lower in March, 58.1 vs. February’s 58.2. In the opinion of Camilla Sutton, Chief FX Strategist at Scotiabank, the short term technicals remain mixed “providing very few near term signals as the currency trades in a relative tight multi-month range. Support lies at the 50-day MA at 1.6586; while resistance lies at the recent high of 1.6684 followed by the multi-year closing high of 1.6747 (Feb.14, 2014)”.
GBP/USD levels to watch
At the moment the pair is advancing 0.11% at 1.6644 with the initial resistance at 1.6665 (high Apr.2) followed by 1.6684 (high Mar.31) and finally 1.6719 (high Mar.13). On the flip side, a breakdown of 1.6620 (daily cloud top) would target 1.6613 (low Mar.31) en route to 1.6599 (low Mar.28).