26 Sep 2013
GBP/USD challenges 1.6000
FXstreet.com (Edinburgh) - The risk aversion has irrupted abruptly in the markets, with the GBP/USD following the rest of risk-associated assets and testing lows around 1.6000 the figure.
GBP/USD weaker on data
A combination of UK and US mixed results are plotting against any bull attempts of the sterling, falling since pre-European open levels near the key handle at 1.6100 to the current session lows near 1.6000 the figure. In light of the solid releases from the UK economy, the research team at HSBC assessed, “Is it rational to believe the UK economy can power away whilst the US falters? The most likely case seems to be that the recent relative outperformance of the UK economy will fade away. First, by their very nature, positive surprises are very unlikely in the long term, simply because expectations adjust upwards. Second, and more importantly, it is difficult to see a sustained increase in UK consumer spending while real income growth continues to be negative”.
GBP/USD key levels
As of writing the pair is down 0.46% at 1.6006 and a break below 1.5980 (low Sep.25) would expose 1.5970 (daily Tenkan line)( and finally 1.5955 (low Sep.24). On the upside, the initial hurdle lines up at 1.6096 (high Sep26) followed by 1.6145 (high Sep.19) and then 1.6164 (high Sep.18).
GBP/USD weaker on data
A combination of UK and US mixed results are plotting against any bull attempts of the sterling, falling since pre-European open levels near the key handle at 1.6100 to the current session lows near 1.6000 the figure. In light of the solid releases from the UK economy, the research team at HSBC assessed, “Is it rational to believe the UK economy can power away whilst the US falters? The most likely case seems to be that the recent relative outperformance of the UK economy will fade away. First, by their very nature, positive surprises are very unlikely in the long term, simply because expectations adjust upwards. Second, and more importantly, it is difficult to see a sustained increase in UK consumer spending while real income growth continues to be negative”.
GBP/USD key levels
As of writing the pair is down 0.46% at 1.6006 and a break below 1.5980 (low Sep.25) would expose 1.5970 (daily Tenkan line)( and finally 1.5955 (low Sep.24). On the upside, the initial hurdle lines up at 1.6096 (high Sep26) followed by 1.6145 (high Sep.19) and then 1.6164 (high Sep.18).