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10 Sep 2013
GBP/USD drops to lows around 1.5690
FXstreet.com (Edinburgh) -The sterling is losing momentum on Tuesday, pushing the GBP/USD to challenge session lows in the vicinity of 1.5685/80.
GBP/USD keeps the bid tone
Recent risk-appetite trends gave extra support to the sterling, which was already boosted by the scepticism surrounding the BoE’s forward guidance and the robust data from the British economy. Jane Foley, Strategist at Rabobank, commented, “tomorrow’s release of UK unemployment data will be a highlight given the BoE’s new forward guidance. Decent data is likely to encourage growing confidence in the UK’s economic recovery and the expectation that the BoE could be hiking rates as soon as late next year, well ahead of the date hinted to by the Bank. The BoE, however, failed to push back again the rise in market rates in the statement it issued after last week’s policy meeting. In the absence of a more aggressive stand by the BoE, we remain buyers of sterling”.
GBP/USD relevant levels
The pair is now flat at 1.5694 facing the next hurdle at 1.5732 (high Sep.9) ahead of 1.5753 (high Jun.17) and finally 1.5782 (61.8% of 1.6380-1.4814). On the flip side, a breakdown of 1.5694 (MA10h) would expose 1.5603 (low Sep.9) and then 1.5573 (MA10d).
GBP/USD keeps the bid tone
Recent risk-appetite trends gave extra support to the sterling, which was already boosted by the scepticism surrounding the BoE’s forward guidance and the robust data from the British economy. Jane Foley, Strategist at Rabobank, commented, “tomorrow’s release of UK unemployment data will be a highlight given the BoE’s new forward guidance. Decent data is likely to encourage growing confidence in the UK’s economic recovery and the expectation that the BoE could be hiking rates as soon as late next year, well ahead of the date hinted to by the Bank. The BoE, however, failed to push back again the rise in market rates in the statement it issued after last week’s policy meeting. In the absence of a more aggressive stand by the BoE, we remain buyers of sterling”.
GBP/USD relevant levels
The pair is now flat at 1.5694 facing the next hurdle at 1.5732 (high Sep.9) ahead of 1.5753 (high Jun.17) and finally 1.5782 (61.8% of 1.6380-1.4814). On the flip side, a breakdown of 1.5694 (MA10h) would expose 1.5603 (low Sep.9) and then 1.5573 (MA10d).