7 May 2014
GBP/USD takes a breather below 1.7000
FXStreet (Córdoba) - The GBP/USD entered a consolidation phase Wednesday as the Cable takes a breather following a steep rally the previous day.
The GBP/USD has spent the day in a slim range just below 1.7000 after soaring to its highest level in nearly 5 years of 1.6995, supported by solid fundamentals and a weaker dollar. At time of writing, the GBP/USD is trading at the 1.6970 area, virtually unchanged since opening, as attention turns to Fed Chair Yellen's semi-annual congressional testimony.
"She (Yellen) is likely to reiterate the message that, while the economy is expected to recover following the weak Q1, there is plenty of slack in the labour market and inflation is far below the Fed's target", said the Danske Bank team. "The Fed can thus remain patient before raising rates once the QE tapering is over later this year".
GBP/USD supports and resistances
As for technical levels, the GBP/USD could find next resistances at 1.7000 (psychological level), 1.7041 (2009 high) and not much till 1.7100 (psychological level). On the other hand, supports are now seen at 1.6917 (former 2014 high), 1.6900 (psychological level) and 1.6868 (10-day SMA).
The GBP/USD has spent the day in a slim range just below 1.7000 after soaring to its highest level in nearly 5 years of 1.6995, supported by solid fundamentals and a weaker dollar. At time of writing, the GBP/USD is trading at the 1.6970 area, virtually unchanged since opening, as attention turns to Fed Chair Yellen's semi-annual congressional testimony.
"She (Yellen) is likely to reiterate the message that, while the economy is expected to recover following the weak Q1, there is plenty of slack in the labour market and inflation is far below the Fed's target", said the Danske Bank team. "The Fed can thus remain patient before raising rates once the QE tapering is over later this year".
GBP/USD supports and resistances
As for technical levels, the GBP/USD could find next resistances at 1.7000 (psychological level), 1.7041 (2009 high) and not much till 1.7100 (psychological level). On the other hand, supports are now seen at 1.6917 (former 2014 high), 1.6900 (psychological level) and 1.6868 (10-day SMA).