20 Aug 2013
GBP/USD eyes 1.5727
FXstreet.com (Barcelona) - GBP/USD is quiet at the start of this week, with keeping to a tight rage of between 40 pips.
The major factor that will threaten the recent rally in GBPUSD is the re-emergence of markets focus on the likelihood of the Fed tapering and this week could spark that interest., research teams said at Investec Bank “The latest FOMC minutes from the US will be released on Wednesday evening and could shed some light on September tapering. Investors have grown wary of the promise of Fed tapering as the summer has progressed but it’s difficult to ignore the impact this theme had on GBPUSD in June (dipping to the 1.48’s) and therefore we will remain vigilant to the possibility of renewed USD strength. It’s interesting to note an article released in the Wall Street Journal today that discusses the possible fractions created in the Fed by Bernanke’s planned departure and the arrival of his successor. Long term, any Fed instability that threatens the credibility of their policy approach will be viewed as dollar negative by markets. Elsewhere, it remains quiet in Europe so we look ahead to any revision to the final German Q2 GDP estimate released this Friday for potential impact on the single currency, whilst we keep one eye on Egypt as the appalling violence continues in the region which is yet to have any significant affect on markets”.
GBP/USD bullish bias
GBP/USD eyes the uptrend channel resistance line at 1.5727 with the 200 week moving average and resistance at 1.5752. The 20 dma is 1.5410, the 50 dma is 1.5348 and the 200 dma is 1.5522. RSI (9) reads 71.00. Supports are ascending from 1.5548, 1.5574, 1.5590, 1.5608. Spot is 1.5647 while resistances are 1.5680, 1.5709, 1.5723 and 1.5753.
The major factor that will threaten the recent rally in GBPUSD is the re-emergence of markets focus on the likelihood of the Fed tapering and this week could spark that interest., research teams said at Investec Bank “The latest FOMC minutes from the US will be released on Wednesday evening and could shed some light on September tapering. Investors have grown wary of the promise of Fed tapering as the summer has progressed but it’s difficult to ignore the impact this theme had on GBPUSD in June (dipping to the 1.48’s) and therefore we will remain vigilant to the possibility of renewed USD strength. It’s interesting to note an article released in the Wall Street Journal today that discusses the possible fractions created in the Fed by Bernanke’s planned departure and the arrival of his successor. Long term, any Fed instability that threatens the credibility of their policy approach will be viewed as dollar negative by markets. Elsewhere, it remains quiet in Europe so we look ahead to any revision to the final German Q2 GDP estimate released this Friday for potential impact on the single currency, whilst we keep one eye on Egypt as the appalling violence continues in the region which is yet to have any significant affect on markets”.
GBP/USD bullish bias
GBP/USD eyes the uptrend channel resistance line at 1.5727 with the 200 week moving average and resistance at 1.5752. The 20 dma is 1.5410, the 50 dma is 1.5348 and the 200 dma is 1.5522. RSI (9) reads 71.00. Supports are ascending from 1.5548, 1.5574, 1.5590, 1.5608. Spot is 1.5647 while resistances are 1.5680, 1.5709, 1.5723 and 1.5753.