29 Oct 2013
GBP/USD testing 1.6100
FXstreet.com (London) - GBP/USD is testing 1.6100 on the back of a series of poor data from the US.
Meanwhile, Jane Foley, Senior Currency Strategist at Rabobank said November promises to be an interesting month for the pound. In the last 3 or 4 months sterling has priced-in a lot of good news on the back of mostly better than expected UK economic data. Last week’s 0.8% q/q upturn in Q3 GDP was the strongest figure since Q2 2010 and, coming on the back of the 0.7% q/q Q2 expansion, it has been sufficiently robust to convince BoE Governor Carney that “the rate of growth in the UK is toward the top end of advanced economies”. There is currently speculation that BoE may use the publication of its next Inflation Report on November 13 to indicate that it may be hiking interest rates at the start of 2016 rather than later that year. This would be positive for sterling, although we would warn that with so much good news already in the price, that further upside for the pound from current levels could be tough”.
GBP/USD Levels
The 20 DMA is 1.6099, the 50 DMA is 1.5899 and the 200 DMA is 1.5480. RSI (18) reads 56.98. Support is coming in from, 1.5940,1.5980,1.6018 and 1.6033. Spot is currently 1.6089 while resistances are 1.6124, 1.6160, 1.6207 and
1.6260.
Meanwhile, Jane Foley, Senior Currency Strategist at Rabobank said November promises to be an interesting month for the pound. In the last 3 or 4 months sterling has priced-in a lot of good news on the back of mostly better than expected UK economic data. Last week’s 0.8% q/q upturn in Q3 GDP was the strongest figure since Q2 2010 and, coming on the back of the 0.7% q/q Q2 expansion, it has been sufficiently robust to convince BoE Governor Carney that “the rate of growth in the UK is toward the top end of advanced economies”. There is currently speculation that BoE may use the publication of its next Inflation Report on November 13 to indicate that it may be hiking interest rates at the start of 2016 rather than later that year. This would be positive for sterling, although we would warn that with so much good news already in the price, that further upside for the pound from current levels could be tough”.
GBP/USD Levels
The 20 DMA is 1.6099, the 50 DMA is 1.5899 and the 200 DMA is 1.5480. RSI (18) reads 56.98. Support is coming in from, 1.5940,1.5980,1.6018 and 1.6033. Spot is currently 1.6089 while resistances are 1.6124, 1.6160, 1.6207 and
1.6260.