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7 Oct 2013
GBP/USD bounces off lows
FXstreet.com (Edinburgh) -The sterling is posting meager gains at the beginning of the week, taking the GBP/USD to the 1.6030/35 region after bottoming out near 1.6020.
GBP/USD focus on the BoE
The big event for the pound ahead in the week will be the BoE minutes due on Wednesday. Market consensus expects a unanimous vote favouring the current status quo, which would be indicative that the central bank is moving further away from its easing cycle, giving support to the sterling. According to BBH Global Currency Strategy Team, “ The post-FOMC low was set near $.1.5955 and this needs to be convincingly violated to support ideas that a top is being carved out. Bearish divergences are appearing in the daily RSI as the last week's high in spot was not confirmed by the technical indicator. MACDs are crossing to the downside”.
GBP/USD technical levels
The pair is now up 0.16% at 1.6036 with the immediate resistance at 1.6240 (high Oct.3) ahead of 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1). On the downside, a break below 1.5954 (low Sep.24) would expose 1.5847 (uptrend line) and then 1.5752 (June high).
GBP/USD focus on the BoE
The big event for the pound ahead in the week will be the BoE minutes due on Wednesday. Market consensus expects a unanimous vote favouring the current status quo, which would be indicative that the central bank is moving further away from its easing cycle, giving support to the sterling. According to BBH Global Currency Strategy Team, “ The post-FOMC low was set near $.1.5955 and this needs to be convincingly violated to support ideas that a top is being carved out. Bearish divergences are appearing in the daily RSI as the last week's high in spot was not confirmed by the technical indicator. MACDs are crossing to the downside”.
GBP/USD technical levels
The pair is now up 0.16% at 1.6036 with the immediate resistance at 1.6240 (high Oct.3) ahead of 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1). On the downside, a break below 1.5954 (low Sep.24) would expose 1.5847 (uptrend line) and then 1.5752 (June high).