28 Apr 2014
GBP/USD challenging 1.6800
FXStreet (Edinburgh) - The upside momentum in the sterling is now running out of steam, dragging the GBP/USD to test the 1.6800 key support.
GBP/USD back from highs
After hitting fresh multi-year highs near 1.6860, spot is now intensifying the intraday correction back to the 1.6800 handle following the rest of the risk universe. Data-wise, tomorrow’s Q1 GDP figures in the UK economy will be in the spotlight, with consensus expecting the British economy to have expanded 0.9% inter-quarter. “We see downside risks to the market (0.9% qoq) and BoE (1.0%) expectations for Q1:14. While such data won’t be consistent with a significant slowdown, it should calm calls about notions of a marked reacceleration in GDP”, observed Paul Robson, FX Senior Strategist at RBS.
GBP/USD levels to watch
At the time of writing the pair is up 0.06% at 1.6811 and a surpass of 1.6859 (high Apr.28) would open the door to 1.6879 (high Nov.16 2009) and finally 1.6900 (psychological level). On the flip side, the initial support aligns at 1.6777 (low Apr.28) ahead of 1.6766 (low Apr.24) and then 1.6762 (low Apr.23).
GBP/USD back from highs
After hitting fresh multi-year highs near 1.6860, spot is now intensifying the intraday correction back to the 1.6800 handle following the rest of the risk universe. Data-wise, tomorrow’s Q1 GDP figures in the UK economy will be in the spotlight, with consensus expecting the British economy to have expanded 0.9% inter-quarter. “We see downside risks to the market (0.9% qoq) and BoE (1.0%) expectations for Q1:14. While such data won’t be consistent with a significant slowdown, it should calm calls about notions of a marked reacceleration in GDP”, observed Paul Robson, FX Senior Strategist at RBS.
GBP/USD levels to watch
At the time of writing the pair is up 0.06% at 1.6811 and a surpass of 1.6859 (high Apr.28) would open the door to 1.6879 (high Nov.16 2009) and finally 1.6900 (psychological level). On the flip side, the initial support aligns at 1.6777 (low Apr.28) ahead of 1.6766 (low Apr.24) and then 1.6762 (low Apr.23).