Back
8 May 2013
Forex: GBP/USD flirting with 1.5500
FXstreet.com (Barcelona) - The sterling has finally reached the boundaries of the key resistance at 1.5500 on Wednesday, bolstered by the increasing risk appetite prevailing in the markets, intensified by the upbeat data from Germany’s industrial sector.
According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “Sterling shorts lessened modestly but remain at weak levels. The tone of UK economic data have improved sufficiently for the market to bet that BoE policy will remain on hold for now. However, the UK economy is still weak and sterling is therefore still vulnerable”.
GBP/USD is now advancing 0.14% at 1.5506.
Next resistance levels line up at 1.5512 (MA10d) followed by 1.5521 (low May 6) and finally 1.5553 (high May 7).
On the downside, a breach of 1.5467 (low Apr.30) would expose 1.5445 (low May 7) and then 1.5418 (low Apr.26).
According to the last CFTC COT report, Strategist Jane Foley at Rabobank commented, “Sterling shorts lessened modestly but remain at weak levels. The tone of UK economic data have improved sufficiently for the market to bet that BoE policy will remain on hold for now. However, the UK economy is still weak and sterling is therefore still vulnerable”.
GBP/USD is now advancing 0.14% at 1.5506.
Next resistance levels line up at 1.5512 (MA10d) followed by 1.5521 (low May 6) and finally 1.5553 (high May 7).
On the downside, a breach of 1.5467 (low Apr.30) would expose 1.5445 (low May 7) and then 1.5418 (low Apr.26).