8 Aug 2013
GBP/USD flat-lining around 1.5500
FXstreet.com (Edinburgh) -The sterling is extending its flat-line pattern since yesterday afternoon, with the GBP/USD hovering over the key level at 1.5500.
GBP/USD stabilizing around 1.5500
After a brief dip to the boundaries of the key support at 1.5200 post-BoE on Wednesday, the pound rapidly climbed to multi-week peaks around 1.5530, just to ease ground later to the current area of 1.5500. Morten Helt, Senior Analyst at Danske Bank, assessed, “Given the positioning unwinding currently in place and the slight disappointment in the announcement, the risk is skewed towards further GBP strength short term and the risk of a more pronounced GBP sell-off should be much smaller now. However, one clear conclusion is that Carney has absolutely no plan to hike rates for the next three years and thus GBP will still be left with the most aggressive and dovish G4 central bank after the Bank of Japan”.
GBP/USD key levels
As of writing, the pair is up 0.10% at 1.5506 with the next hurdle at 1.5519 (high Aug.8) ahead of 1.5534 (high Aug.7) and then 1.5537 (MA200d). On the downside, a drop beyond 1.5328 (MA10d) would aim for 1.5309 (MA100d) and then 1.5205 (low Aug.7).
GBP/USD stabilizing around 1.5500
After a brief dip to the boundaries of the key support at 1.5200 post-BoE on Wednesday, the pound rapidly climbed to multi-week peaks around 1.5530, just to ease ground later to the current area of 1.5500. Morten Helt, Senior Analyst at Danske Bank, assessed, “Given the positioning unwinding currently in place and the slight disappointment in the announcement, the risk is skewed towards further GBP strength short term and the risk of a more pronounced GBP sell-off should be much smaller now. However, one clear conclusion is that Carney has absolutely no plan to hike rates for the next three years and thus GBP will still be left with the most aggressive and dovish G4 central bank after the Bank of Japan”.
GBP/USD key levels
As of writing, the pair is up 0.10% at 1.5506 with the next hurdle at 1.5519 (high Aug.8) ahead of 1.5534 (high Aug.7) and then 1.5537 (MA200d). On the downside, a drop beyond 1.5328 (MA10d) would aim for 1.5309 (MA100d) and then 1.5205 (low Aug.7).