25 Nov 2013
GBP/USD driven on UK developments
FXstreet.com (London) - GBP/USD has dropped territory in the 1.62 handle down 0.47% while spot trades 1.6133.
RBS currency strategist’s said that the key theme for GBP remains the fact that the policy mix in the UK is driving a counter-cyclical domestic recovery (relative to other major developed economies) driven by the housing market. “If this current theme persists, which seems likely, the key question for early 2014 will be how long can the MPC allow policy to tighten as GBP appreciates and market interest rise? It's a question that some other small open economies will have to answer…While we continue to have concerns that the economy may start to soften during the winter months as base effects become less supportive, on balance the UK looks set to continue to perform well on a relative basis. Next up on the list of MPC speakers is Governor Carney. He's talking about financial stability, so there may be no direct reference to monetary policy. However, if he does, it will be interesting to see how GBP markets react”.
GBP/USD Levels
The 20 DMA is 1.6064, the 50 DMA is 1.6071 and the 200 DMA is 1.5515. RSI (14) reads 31.86. Next support comes at 1.6118 while the pair trades at Spot currently 1.6133. Resistances are 1.6145, 1.6178, 1.6203, 1.6229, 1.6260 and 1.6310.
RBS currency strategist’s said that the key theme for GBP remains the fact that the policy mix in the UK is driving a counter-cyclical domestic recovery (relative to other major developed economies) driven by the housing market. “If this current theme persists, which seems likely, the key question for early 2014 will be how long can the MPC allow policy to tighten as GBP appreciates and market interest rise? It's a question that some other small open economies will have to answer…While we continue to have concerns that the economy may start to soften during the winter months as base effects become less supportive, on balance the UK looks set to continue to perform well on a relative basis. Next up on the list of MPC speakers is Governor Carney. He's talking about financial stability, so there may be no direct reference to monetary policy. However, if he does, it will be interesting to see how GBP markets react”.
GBP/USD Levels
The 20 DMA is 1.6064, the 50 DMA is 1.6071 and the 200 DMA is 1.5515. RSI (14) reads 31.86. Next support comes at 1.6118 while the pair trades at Spot currently 1.6133. Resistances are 1.6145, 1.6178, 1.6203, 1.6229, 1.6260 and 1.6310.