26 Jul 2013
GBP/USD suprises through 1.5400
FXstreet.com (Barcelona) - GBP/USD made a high of 1.5436 but has since settled and is trading lower at the time of writing 1.5390/95.
GBP/USD is higher amid broad based dollar weakness and has been a surprise to markets in general. Research teams at TD Securities summerised events overnight as follows, “The USD was weighed by a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year. The other front runner, Larry Summers, is seen as less dovish, and has been quoted by the FT as saying that QE is “less efficacious for the real economy than most people suppose””.
GBP/USD topside surprises
Karen Jones, Head of FICC Technical Analysis at Commerzbank said the GBP/USD has charted an outside day to the topside through the 1.5393 61.8% retracement. “We are very surprised to see this chart action and all the intraday charts, Elliott wave signals and TD counts continue to point to failure”. She said, should 1,5435 be eroded however we will have to allow for further upside gains to 1.5551 the 78.6% retracement.
GBP/USD is higher amid broad based dollar weakness and has been a surprise to markets in general. Research teams at TD Securities summerised events overnight as follows, “The USD was weighed by a WSJ Hilsenrath article that suggested the Fed will stick to a dovish script next week, possibly lowering the unemployment threshold for raising rates to below 6.5%. This was followed by news that a number of US Senate Democrats have circulated a letter in support of Janet Yellen, a noted dove, to replace Fed Chairman Bernanke when his term ends early next year. The other front runner, Larry Summers, is seen as less dovish, and has been quoted by the FT as saying that QE is “less efficacious for the real economy than most people suppose””.
GBP/USD topside surprises
Karen Jones, Head of FICC Technical Analysis at Commerzbank said the GBP/USD has charted an outside day to the topside through the 1.5393 61.8% retracement. “We are very surprised to see this chart action and all the intraday charts, Elliott wave signals and TD counts continue to point to failure”. She said, should 1,5435 be eroded however we will have to allow for further upside gains to 1.5551 the 78.6% retracement.