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27 Mar 2014
GBP/USD challenging 1.6600
FXStreet (Edinburgh) - The sterling is now losing the grip against the USD, pushing the GBP/USD to surrender initial gains and trade back around the 1.6600 handle.
GBP/USD boosted by UK data
The pound was already trading in an upbeat mood this week, and today’s stronger-than-expected UK Retail Sales (1.7% MoM vs. 0.5% exp.) finally sent spot to fresh multi-day highs near 1.6650. Next of note in the UK docket will be tomorrow’s Q4 GDP final figures, expected at 0.7% inter-quarter. “Short-end UK rates ticked, but the real reaction to the data was with sterling, which ran up three-quarters of a cent to $1.6640, trading above the 20-day moving average (~$1.6620) for the first time in two weeks. It is testing a band of resistance that extends toward $1.6660. We expect this area to hold today”, observed analysts at BBH Global Currency Strategy Team.
GBP/USD levels to watch
At the moment the pair is up 0.15% at 1.6607 with the next resistance at 1.6642 (high Mar.27) followed by 1.6655 (high Mar.19) and then 1.6667 (high Mar.17). On the downside, a break below 1.6563 (10-d MA) would expose 1.6460 (low Mar.24) and finally 1.6400 (psychological level).
GBP/USD boosted by UK data
The pound was already trading in an upbeat mood this week, and today’s stronger-than-expected UK Retail Sales (1.7% MoM vs. 0.5% exp.) finally sent spot to fresh multi-day highs near 1.6650. Next of note in the UK docket will be tomorrow’s Q4 GDP final figures, expected at 0.7% inter-quarter. “Short-end UK rates ticked, but the real reaction to the data was with sterling, which ran up three-quarters of a cent to $1.6640, trading above the 20-day moving average (~$1.6620) for the first time in two weeks. It is testing a band of resistance that extends toward $1.6660. We expect this area to hold today”, observed analysts at BBH Global Currency Strategy Team.
GBP/USD levels to watch
At the moment the pair is up 0.15% at 1.6607 with the next resistance at 1.6642 (high Mar.27) followed by 1.6655 (high Mar.19) and then 1.6667 (high Mar.17). On the downside, a break below 1.6563 (10-d MA) would expose 1.6460 (low Mar.24) and finally 1.6400 (psychological level).