22 Jan 2014
GBP/USD shows no vertigo near 1.6560
FXstreet.com (Edinburgh) -The pound keeps the bid tone on Wednesday post-UK data, lifting the GBP/USD to test 3-week peaks beyond 1.6560.
GBP/USD next stop 1.6600?
The pair was largely benefitted after the upbeat tone from the UK labour market, where the ILO u-rate declined to 7.1% in November, much closer to the BoE’s 7.0% threshold. In the wake of the data releases, analyst James Knightley at ING assessed, “There is the clear threat that the 7% threshold is breached in the next month or two and with GDP in our view likely to hit 3% this year the probability of an interest rate rise in 2014 is increasing. However, wage pressures remain non-existent and with inflation looking as though it will be well behaved this year the BoE will likely continue to play down the prospect of actual policy tightening until they think this situation is changing”.
GBP/USD key levels
At the moment the pair is advancing 0.48% at 1.6552 with the next resistance at 1.6605 (2014 high Jan.2) and then 1.6618 (high Aug.19 2011). On the downside, a break below 1.6400 (low Jan.21) would aim for 1.6396 (low Jan.20) and then 1.6309 (low Jan.17).
GBP/USD next stop 1.6600?
The pair was largely benefitted after the upbeat tone from the UK labour market, where the ILO u-rate declined to 7.1% in November, much closer to the BoE’s 7.0% threshold. In the wake of the data releases, analyst James Knightley at ING assessed, “There is the clear threat that the 7% threshold is breached in the next month or two and with GDP in our view likely to hit 3% this year the probability of an interest rate rise in 2014 is increasing. However, wage pressures remain non-existent and with inflation looking as though it will be well behaved this year the BoE will likely continue to play down the prospect of actual policy tightening until they think this situation is changing”.
GBP/USD key levels
At the moment the pair is advancing 0.48% at 1.6552 with the next resistance at 1.6605 (2014 high Jan.2) and then 1.6618 (high Aug.19 2011). On the downside, a break below 1.6400 (low Jan.21) would aim for 1.6396 (low Jan.20) and then 1.6309 (low Jan.17).