18 Aug 2015
GBP/USD support at 1.5650 holding off supply
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5662 with a high of 1.5718a low of 1.5561.
GBP/USD has found support on the supply that came on the back of the spike from 1.5560. The pound was under demand on the outlook for the BoE and the performances in the UK economy of late. The hawkish rhetoric from members of the old lady has been taking the FX space's attention and today's CPI numbers were enough to trigger investors in to action, buying in to sterling's strength right up to test 1.5720 resistance in London. The CPI's rose to -0.2% vs -0.3 expected M/M while Y/Y fell in at 0.1% vs 0.0% expected. We now await the US CPI's and also the FOMC minutes.
GBP/USD downside levels compelling
The end of July's high has been eroded at 1.5690 which has opened up prospects for 1.5800. The next resistance to break down is 1.5780. However, repeated failures would see the Elliott wave counts bringing a slide back to the1.5424 and current August lows bad in to the picture, as noted by Karen Jones, chief analyst at Commerzbank. The 200 day moving average at 1.5372 is also on note. "For a more negative stance to be adopted at this stage we will need a close below the July low at 1.5330."
GBP/USD has found support on the supply that came on the back of the spike from 1.5560. The pound was under demand on the outlook for the BoE and the performances in the UK economy of late. The hawkish rhetoric from members of the old lady has been taking the FX space's attention and today's CPI numbers were enough to trigger investors in to action, buying in to sterling's strength right up to test 1.5720 resistance in London. The CPI's rose to -0.2% vs -0.3 expected M/M while Y/Y fell in at 0.1% vs 0.0% expected. We now await the US CPI's and also the FOMC minutes.
GBP/USD downside levels compelling
The end of July's high has been eroded at 1.5690 which has opened up prospects for 1.5800. The next resistance to break down is 1.5780. However, repeated failures would see the Elliott wave counts bringing a slide back to the1.5424 and current August lows bad in to the picture, as noted by Karen Jones, chief analyst at Commerzbank. The 200 day moving average at 1.5372 is also on note. "For a more negative stance to be adopted at this stage we will need a close below the July low at 1.5330."