15 Jan 2014
GBP/USD slumps to 3-week lows after US data
FXstreet.com (Córdoba) - The GBP/USD slumped to fresh lows at the beginning of the New York session after solid US data gave the greenback a boost.
The NY Empire State manufacturing index soared to its highest in 20 months in January, signaling strong expansion in the sector, while December's producer price index grew in line with expectations. The GBP/USD accelerated lower, breaking decisively below the 1.6400/1.6375 area slipping to a low of 1.6327, last seen Dec 24 2013.
GBP/USD levels to watch
At time of writing, the Cable is trading at the 1.6345 area, recording a 0.6% loss Wednesday with immediate supports at 1.6327 (Jan 15 low), 1.6320 (Dec 24 low) and 1.6300 (psychological level). On the flip side, resistances are seen at 1.6407 (20-day SMA), 1.6442 (Jan 15 high) and 1.6464 (Jan 14 high).
The NY Empire State manufacturing index soared to its highest in 20 months in January, signaling strong expansion in the sector, while December's producer price index grew in line with expectations. The GBP/USD accelerated lower, breaking decisively below the 1.6400/1.6375 area slipping to a low of 1.6327, last seen Dec 24 2013.
GBP/USD levels to watch
At time of writing, the Cable is trading at the 1.6345 area, recording a 0.6% loss Wednesday with immediate supports at 1.6327 (Jan 15 low), 1.6320 (Dec 24 low) and 1.6300 (psychological level). On the flip side, resistances are seen at 1.6407 (20-day SMA), 1.6442 (Jan 15 high) and 1.6464 (Jan 14 high).