3 Dec 2013
GBP/USD rejected near 1.6440
FXstreet.com (Edinburgh) - The sterling is rapidly picking up pace against the greenback on Tuesday, pushing the GBP/USD to the vicinity of 2013 peaks near 1.6440, although losing some vigour afterwards.
GBP/USD buoyed by data
Better results from Monday’s manufacturing PMI and today’s construction PMI have been supporting the GBP bullish momentum, ahead of the BoE MPC meeting and the Autumn Statement Forecast due later in the week. In the wake of the string construction PMI, analysts at BBH observed that “It is encouraging the market to increase the odds of a rate hike by early 2015 as reflected in the short-sterling futures contracts. It leaves tomorrow's services PMI to round out the trifecta that will point to an acceleration of the UK economy into the end of the year.
GBP/USD levels to watch
At the moment the pair is up 0.38% at 1.6417 facing the next hurdle at 1.6443 (2013 high Dec.2) followed by 1.6455 (high Aug.29 2011) and finally 1.6500 (psychological level). On the flip side, a break below 1.6315 (low Nov.29) would aim for 1.6277 (low Nov.28) and then 1.6260 (high Oct.1).
GBP/USD buoyed by data
Better results from Monday’s manufacturing PMI and today’s construction PMI have been supporting the GBP bullish momentum, ahead of the BoE MPC meeting and the Autumn Statement Forecast due later in the week. In the wake of the string construction PMI, analysts at BBH observed that “It is encouraging the market to increase the odds of a rate hike by early 2015 as reflected in the short-sterling futures contracts. It leaves tomorrow's services PMI to round out the trifecta that will point to an acceleration of the UK economy into the end of the year.
GBP/USD levels to watch
At the moment the pair is up 0.38% at 1.6417 facing the next hurdle at 1.6443 (2013 high Dec.2) followed by 1.6455 (high Aug.29 2011) and finally 1.6500 (psychological level). On the flip side, a break below 1.6315 (low Nov.29) would aim for 1.6277 (low Nov.28) and then 1.6260 (high Oct.1).