12 Feb 2014
GBP/USD knocking on 1.6600 door
FXStreet (Edinburgh) - The pound managed to break above the 1.6440/60 range that prevailed overnight, pushing the GBP/USD to levels just shy of 1.6600 the figure post-BoE’s QIR.
GBP/USD gearing up for 1.6600?
The positive tone from Governor Carney in today’s Quarterly Inflation Report caught market participants off guard, helping spot to quickly leave behind the 1.6500 critical handle and advance to almost 1.6600. “We are of the view that a strong pound will continue to help anchor inflation expectations and assist in keeping downward pressure on interest rates. It is our opinion that that is more preferable to early interest rate rises and we continue to look for moderate sterling gains across the board in coming months”, commented Senior Strategist Brian Martin at ANZ.
GBP/USD key levels
At the moment the pair is gaining 0.76% at 1.6576 facing the next resistance at 1.6600 (psychological level) ahead of 1.6606 (high Jan.29). On the downside, a violation of 1.6425 (low Feb.12) would open the door to 1.6392 (low Feb.11) and finally 1.6384 (low Feb.10).
GBP/USD gearing up for 1.6600?
The positive tone from Governor Carney in today’s Quarterly Inflation Report caught market participants off guard, helping spot to quickly leave behind the 1.6500 critical handle and advance to almost 1.6600. “We are of the view that a strong pound will continue to help anchor inflation expectations and assist in keeping downward pressure on interest rates. It is our opinion that that is more preferable to early interest rate rises and we continue to look for moderate sterling gains across the board in coming months”, commented Senior Strategist Brian Martin at ANZ.
GBP/USD key levels
At the moment the pair is gaining 0.76% at 1.6576 facing the next resistance at 1.6600 (psychological level) ahead of 1.6606 (high Jan.29). On the downside, a violation of 1.6425 (low Feb.12) would open the door to 1.6392 (low Feb.11) and finally 1.6384 (low Feb.10).