6 May 2014
GBP/USD flirting with 1.6980
FXStreet (Edinburgh) - The pound keeps pushing higher today, lifting the GBP/USD to the boundaries of 1.6980 amidst generalized risk-on sentiment.
GBP/USD boosted by data, risk
The increasing risk appetite plus a very auspicious print from the key services PMI in the UK economy (58.7 act. vs. 57.6 exp.) are collaborating in the current GBP rally to levels last seen in 2009 near 1.6980. “With the economy gaining more and more momentum we expect further significant increases in employment, which will help push wage rates higher. While there is no real prospect of action at this week’s Bank of England policy meeting it looks as though the odds of a policy shift this year are shortening”, commented James Knightley, Analyst at ING Bank.
GBP/USD levels to watch
At the moment the pair is up 0.60% at 1.6969 with the next resistance at 1.7000 (psychological level) ahead of 1.7044 (high Aug.5 2009) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6855 (low May 5) would aim for 1.6845 (10-d MA) and then 1.6821 (low May 2).
GBP/USD boosted by data, risk
The increasing risk appetite plus a very auspicious print from the key services PMI in the UK economy (58.7 act. vs. 57.6 exp.) are collaborating in the current GBP rally to levels last seen in 2009 near 1.6980. “With the economy gaining more and more momentum we expect further significant increases in employment, which will help push wage rates higher. While there is no real prospect of action at this week’s Bank of England policy meeting it looks as though the odds of a policy shift this year are shortening”, commented James Knightley, Analyst at ING Bank.
GBP/USD levels to watch
At the moment the pair is up 0.60% at 1.6969 with the next resistance at 1.7000 (psychological level) ahead of 1.7044 (high Aug.5 2009) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6855 (low May 5) would aim for 1.6845 (10-d MA) and then 1.6821 (low May 2).