22 Aug 2013
GBP/USD finds support around 1.5580
FXstreet.com (Edinburgh) -The sterling is retreating significantly from the second consecutive session on Thursday, dragging the GBP/USD to post weekly lows around 1.5580/75.
GBP/USD weaker ahead of UK data
While market participants are still digesting yesterday’s hawkish FOMC minutes, the pound intensifies its correction lower from recent peaks beyond 1.5700 the figure. The sterling will be in the limelight tomorrow as UK flash GDP figures for the second quarter are due, with market consensus expecting an expansion of 0.6% inter-quarter and 1.4% over the last twelve months. “The pound’s recent gains remain vulnerable to a correction in market expectations over the timing of the first BoE rate hike. We expect the BoE to push back strongly soon against the recent rise in UK short rates since its forward rate guidance was introduced”, commented Lee Hardman, Currency Strategist at BTMU.
GBP/USD relevant levels
As of writing the pair is losing 0.54% at 1.5578 facing the next support at 1.5571 (MA10d) ahead of 1.5519 (MA200d) and then 1.5504 (low Aug.15). On the flip side, a breakout of 1.5650 (high Aug.22) would bring 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17).
GBP/USD weaker ahead of UK data
While market participants are still digesting yesterday’s hawkish FOMC minutes, the pound intensifies its correction lower from recent peaks beyond 1.5700 the figure. The sterling will be in the limelight tomorrow as UK flash GDP figures for the second quarter are due, with market consensus expecting an expansion of 0.6% inter-quarter and 1.4% over the last twelve months. “The pound’s recent gains remain vulnerable to a correction in market expectations over the timing of the first BoE rate hike. We expect the BoE to push back strongly soon against the recent rise in UK short rates since its forward rate guidance was introduced”, commented Lee Hardman, Currency Strategist at BTMU.
GBP/USD relevant levels
As of writing the pair is losing 0.54% at 1.5578 facing the next support at 1.5571 (MA10d) ahead of 1.5519 (MA200d) and then 1.5504 (low Aug.15). On the flip side, a breakout of 1.5650 (high Aug.22) would bring 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17).