26 Jul 2013
GBP/USD in session lows, around 1.5360
FXstreet.com (Edinburgh) -The pound is now reverting initial gains, dragging the GBP/USD to fresh intraday lows in the 1.5360 region after reaching highs near 1.5420.
GBP/USD hurt by risk aversion
Despite the renewed risk aversion, the pair is closing the week with gains for the third consecutive time, although next week’s BoE meeting will surely put the recent GBP rally to the test. “News that the UK economy is displaying greens shoots is another argument against the raising of the Bank’s asset purchases target. On balance we no longer expect any return to QE this year but expect Carney to drive home the message that BoE will remain accommodative for a prolonged period with generous use of forward guidance”, assessed analysts at Rabobank.
GBP/USD levels to consider
At the moment the pair is down 0.17% at 1.5366 and a break below 1.5300 (psychological level) would expose 1.5280 (MA10d) and finally 1.5264 (low Jul.25). On the upside, resistance levels line up at 1.5435 (high Jul.25) followed by 1.5442 (high Jun.26) and finally 1.5480 (high Jun.25).
GBP/USD hurt by risk aversion
Despite the renewed risk aversion, the pair is closing the week with gains for the third consecutive time, although next week’s BoE meeting will surely put the recent GBP rally to the test. “News that the UK economy is displaying greens shoots is another argument against the raising of the Bank’s asset purchases target. On balance we no longer expect any return to QE this year but expect Carney to drive home the message that BoE will remain accommodative for a prolonged period with generous use of forward guidance”, assessed analysts at Rabobank.
GBP/USD levels to consider
At the moment the pair is down 0.17% at 1.5366 and a break below 1.5300 (psychological level) would expose 1.5280 (MA10d) and finally 1.5264 (low Jul.25). On the upside, resistance levels line up at 1.5435 (high Jul.25) followed by 1.5442 (high Jun.26) and finally 1.5480 (high Jun.25).