5 May 2014
GBP/USD sidelined around 1.6870
FXStreet (Edinburgh) - The sterling is now posting marginal losses vs. the greenback, with the GBP/USD hovering over 1.6865/70.
GBP/USD focus on PMI, BoE
The pair is attempting a consolidation pattern after hitting multi-year highs beyond 1.6900 the figure last week, ahead of the relevant services PMI in the UK economy tomorrow (57.6 exp.) and the BoE MPC gathering on Thursday. “The strength of the UK economy, and this quarter it will likely surpass its pre-crisis peak is helping to widen interest rate differentials in sterling's favor. We look for bulls to continue to absorb the offers ahead of $1.70 and eventually drive sterling through there… The $1.6780-$1.6800 area is forming an important area. It probably requires a break of $1.6760 to suggest a break out”, observed analysts at BBH Global Currency Strategy Team.
GBP/USD levels to consider
As of writing the pair is retreating 0.03% at 1.6867 with the immediate support at 1.6835 (10-d MA) ahead of 1.6821 (low May 2) and finally 1.6805 (low Apr.30). On the flip side, a break above 1.6894 (high May 2) would aim for 1.6921 (high May 1) and then 1.7000 (psychological level).
GBP/USD focus on PMI, BoE
The pair is attempting a consolidation pattern after hitting multi-year highs beyond 1.6900 the figure last week, ahead of the relevant services PMI in the UK economy tomorrow (57.6 exp.) and the BoE MPC gathering on Thursday. “The strength of the UK economy, and this quarter it will likely surpass its pre-crisis peak is helping to widen interest rate differentials in sterling's favor. We look for bulls to continue to absorb the offers ahead of $1.70 and eventually drive sterling through there… The $1.6780-$1.6800 area is forming an important area. It probably requires a break of $1.6760 to suggest a break out”, observed analysts at BBH Global Currency Strategy Team.
GBP/USD levels to consider
As of writing the pair is retreating 0.03% at 1.6867 with the immediate support at 1.6835 (10-d MA) ahead of 1.6821 (low May 2) and finally 1.6805 (low Apr.30). On the flip side, a break above 1.6894 (high May 2) would aim for 1.6921 (high May 1) and then 1.7000 (psychological level).