6 May 2014
GBP/USD in multi-year highs around 1.6930
FXStreet (Edinburgh) - The sterling is posting fresh multi-year highs on Tuesday, lifting the GBP/USD to the 1.6930/35 region.
GBP/USD focus on PMI
The bid tone is accelerating in the GBP as the greenback is plummeting across the board, ahead of the key services PMI in the UK economy. Market consensus expects the indicator to come in at 57.6 in April, matching the previous reading. Ahead in the week, the BoE will hold its MPC meeting preceding Friday’s Industrial/Manufacturing Production and Trade balance results. “The UK April Markit/CIPS composite and services are due later today and any off median surprises may finally induce a departure from recent trading ranges. In the interim, a 1.6800-1.6930 band may continue to prevail in the near term”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
GBP/USD levels to watch
At the moment the pair is up 0.35% at 1.6927 with the next resistance at 1.7000 (psychological level) ahead of 1.7044 (high Aug.5 2009) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6855 (low May 5) would aim for 1.6845 (10-d MA) and then 1.6821 (low May 2).
GBP/USD focus on PMI
The bid tone is accelerating in the GBP as the greenback is plummeting across the board, ahead of the key services PMI in the UK economy. Market consensus expects the indicator to come in at 57.6 in April, matching the previous reading. Ahead in the week, the BoE will hold its MPC meeting preceding Friday’s Industrial/Manufacturing Production and Trade balance results. “The UK April Markit/CIPS composite and services are due later today and any off median surprises may finally induce a departure from recent trading ranges. In the interim, a 1.6800-1.6930 band may continue to prevail in the near term”, suggested Emmanuel Ng, FX Strategist at OCBC Bank.
GBP/USD levels to watch
At the moment the pair is up 0.35% at 1.6927 with the next resistance at 1.7000 (psychological level) ahead of 1.7044 (high Aug.5 2009) and finally 1.7105 (low Oct.20 2008). On the flip side, a breakdown of 1.6855 (low May 5) would aim for 1.6845 (10-d MA) and then 1.6821 (low May 2).