10 Oct 2013
GBP/USD sidelined around 1.5940
FXstreet.com (Edinburgh) -The GBP/USD is now attempting some sort of consolidation pattern around 1.5940/35 on Thursday, ahead of the BoE MPC meeting due later.
GBP/USD focus on BoE
The demand for the sterling remains subdued today, with the pair extending its correction process from recent weekly peaks near 1.6130 ahead of the BoE meeting. “While the BoE meeting today is unlikely to provide fresh direction for the pound, we expect that sterling will continue to be vulnerable to further profit-taking. That said, the biggest directional influence near-term is set to be the USD… While this position supports the chances of further profit-taking in cable near-term, signs of a severe impact to US growth and accompanying talk of a longer delay in Fed tapering would limit GBP/USD selling”, assessed Jane Foley, Strategist at Rabobank.
GBP/USD key levels
The pair is now losing 0.12% at 1.5934 and a breakdown of 1.5917 (low Oct.9) would expose 1.5903 (MA30d) and finally 1.5893 (low Sep.18). On the upside, the immediate hurdle aligns at 1.5968 (high Oct.9) followed by 1.6109 (MA10d) and then 1.6122 (high Oct.9).
GBP/USD focus on BoE
The demand for the sterling remains subdued today, with the pair extending its correction process from recent weekly peaks near 1.6130 ahead of the BoE meeting. “While the BoE meeting today is unlikely to provide fresh direction for the pound, we expect that sterling will continue to be vulnerable to further profit-taking. That said, the biggest directional influence near-term is set to be the USD… While this position supports the chances of further profit-taking in cable near-term, signs of a severe impact to US growth and accompanying talk of a longer delay in Fed tapering would limit GBP/USD selling”, assessed Jane Foley, Strategist at Rabobank.
GBP/USD key levels
The pair is now losing 0.12% at 1.5934 and a breakdown of 1.5917 (low Oct.9) would expose 1.5903 (MA30d) and finally 1.5893 (low Sep.18). On the upside, the immediate hurdle aligns at 1.5968 (high Oct.9) followed by 1.6109 (MA10d) and then 1.6122 (high Oct.9).