29 Apr 2014
GBP/USD firmer, eyes 2014 highs
FXStreet (Edinburgh) - The sterling is trading on a firmer tone on Tuesday, lifting the GBP/USD near 1.6850, at shouting distance from 2014 highs at 1.6857 (Monday).
GBP/USD up despite UK GDP
After a brief knee-jerk below the 1.6800 handle post-GDP figures, spot managed to pick up pace and is now trading just pips away from multi-year highs near 1.6860, printed yesterday. Recall that the British economy expanded 0.8% inter-quarter during the first three months of 2014, a tad lower than forecasts at 0.9% although surpassing the previous gain of 0.7%. Over the last twelve months, the UK economy grew 3.1% vs. 2.7% previous. “GBP/USD is sitting right below the 1.6820/50 resistance zone. The price needs to break above this level soon or momentum will be lost”, noted Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
At the moment the pair is advancing 0.19% at 1.6840 with the next resistance at 1.6858 (2014 high Apr.28) followed by 1.6879 (high Nov.16 2009) and finally 1.6900 (psychological level). On the downside, a break below 1.6792 (low Apr.29) would open the door to 1.6777 (low Apr.28) and then 1.6762 (low Apr.23).
GBP/USD up despite UK GDP
After a brief knee-jerk below the 1.6800 handle post-GDP figures, spot managed to pick up pace and is now trading just pips away from multi-year highs near 1.6860, printed yesterday. Recall that the British economy expanded 0.8% inter-quarter during the first three months of 2014, a tad lower than forecasts at 0.9% although surpassing the previous gain of 0.7%. Over the last twelve months, the UK economy grew 3.1% vs. 2.7% previous. “GBP/USD is sitting right below the 1.6820/50 resistance zone. The price needs to break above this level soon or momentum will be lost”, noted Paul Robson, Senior FX Strategist at RBS.
GBP/USD levels to watch
At the moment the pair is advancing 0.19% at 1.6840 with the next resistance at 1.6858 (2014 high Apr.28) followed by 1.6879 (high Nov.16 2009) and finally 1.6900 (psychological level). On the downside, a break below 1.6792 (low Apr.29) would open the door to 1.6777 (low Apr.28) and then 1.6762 (low Apr.23).