10 Feb 2014
GBP/USD dives under 1.64 in Europe
FXStreet (Moscow) - GBP/USD spent the Asian trades around 1.6410 area, but with the Europeans back on board, it regained the interest reaching 1.6426 intraday high though quickly sliding back below 1.64.
The Inflation Report is looming
Weaker than expected Non-Farm Payrolls gave the pair stimulus to go higher after a long series of economic disappointments from the Britain. This week may become a turning point for the pound, as the scheduled for release Quarterly Inflation Report will make clear if the era of forward guidance is finished. It looks like the targeted 7.0 unemployment rate has no importance for the BOE right now, and if the Inflation Report supports this suspicion, it may drive the pair lower. Since the report is scheduled for release on Wednesday, all this time we will see some positioning with possibility of mild sell-off. The initial target may be at 1.6379 support level, followed by 1.6338.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6379, with support below at 1.6338, 1.6260 and 1.6219, with resistance above at 1.6457, 1.6498, and 1.6576. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6407, and the daily 20EMA bearish at 1.6426. Hourly RSI is neutral at 70.
The Inflation Report is looming
Weaker than expected Non-Farm Payrolls gave the pair stimulus to go higher after a long series of economic disappointments from the Britain. This week may become a turning point for the pound, as the scheduled for release Quarterly Inflation Report will make clear if the era of forward guidance is finished. It looks like the targeted 7.0 unemployment rate has no importance for the BOE right now, and if the Inflation Report supports this suspicion, it may drive the pair lower. Since the report is scheduled for release on Wednesday, all this time we will see some positioning with possibility of mild sell-off. The initial target may be at 1.6379 support level, followed by 1.6338.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6379, with support below at 1.6338, 1.6260 and 1.6219, with resistance above at 1.6457, 1.6498, and 1.6576. Hourly Moving Averages are largely bullish, with the 200SMA at 1.6407, and the daily 20EMA bearish at 1.6426. Hourly RSI is neutral at 70.