23 Jan 2014
GBP/USD in 2014 highs beyond 1.6600
FXstreet.com (Edinburgh) - Broader risk-on trade is now benefitting the sterling, pushing the GBP/USD to post fresh ytd highs at 1.6615 on Thursday.
GBP/USD extends the upside
Very positive week for the pound so far, prolonging its upside momentum to levels above the 1.6600 handle, last seen in August 2011. The recent BoE minutes plus very promising employment figures helped to build up the current bullish stance. In light of the recent drop of the UK u-rate to 7.1%, Jacqui Douglas, Senior Global Strategist at TD Securities, commented, “This leaves the unemployment rate on track to hit the BoE’s 7.0% threshold next month, with the next employment report due on 19 February. In between now and then though we have the next BoE decision on 6 February and the Inflation Report on 12 February, where we’ll likely see the demise of forward guidance and a move to old-fashioned monetary policy, where the focus will be turned toward inflation expectations”.
GBP/USD levels to consider
The pair is now up 0.18% at 1.6608 with the next up barrier at 1.6615 (2014 high Jan.23) followed by1.6618 (high Aug.19 2011) and then 1.6660 (high May 3 2011). On the other hand, a breakdown of 1.6558 (low Jan.23) would target 1.6452 (low Jan.22) en route to 1.6400 (low Jan.21).
GBP/USD extends the upside
Very positive week for the pound so far, prolonging its upside momentum to levels above the 1.6600 handle, last seen in August 2011. The recent BoE minutes plus very promising employment figures helped to build up the current bullish stance. In light of the recent drop of the UK u-rate to 7.1%, Jacqui Douglas, Senior Global Strategist at TD Securities, commented, “This leaves the unemployment rate on track to hit the BoE’s 7.0% threshold next month, with the next employment report due on 19 February. In between now and then though we have the next BoE decision on 6 February and the Inflation Report on 12 February, where we’ll likely see the demise of forward guidance and a move to old-fashioned monetary policy, where the focus will be turned toward inflation expectations”.
GBP/USD levels to consider
The pair is now up 0.18% at 1.6608 with the next up barrier at 1.6615 (2014 high Jan.23) followed by1.6618 (high Aug.19 2011) and then 1.6660 (high May 3 2011). On the other hand, a breakdown of 1.6558 (low Jan.23) would target 1.6452 (low Jan.22) en route to 1.6400 (low Jan.21).