9 Jul 2014
GBP/USD testing 1.7100
FXStreet (Edinburgh) - The selling mood is intensifying around the sterling on Wednesday, now dragging the GBP/USD to challenge the critical support at 1.7100 the figure.
GBP/USD focus on FOMC, BoE
The sterling continues to correct lower from recent multi-year peaks below the 1.7200 handle in early July, as profit taking seems to prevail amongst traders as well as some softer than expected UK data releases as of late. Ahead in the week, the BoE MPC meeting is due, although market consensus expects no relevant announcements and the central bank to leave its policy unchanged. The immediate risk event however will be today with the release of the FOMC minutes during the European evening. “Provided that we remain under pinned by the 1.6952/1.6845 support an immediate upside bias is preserved. Above 1.7205 will trigger a move to the 50% retracement at 1.7331”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD levels to watch
The pair is now losing 0.11% at 1.7113 with the immediate support at 1.7085 (low Jul.8) followed by 1.7081 (38.2% of 1.6920-1.7180) and then 1.7050 (50% of 1.6920-1.7180). On the upside, a break above 1.7147 (high Jul.8) would open the door to 1.7172 (high Jul.7) and finally 1.7180 (2014 high Jul.2).
GBP/USD focus on FOMC, BoE
The sterling continues to correct lower from recent multi-year peaks below the 1.7200 handle in early July, as profit taking seems to prevail amongst traders as well as some softer than expected UK data releases as of late. Ahead in the week, the BoE MPC meeting is due, although market consensus expects no relevant announcements and the central bank to leave its policy unchanged. The immediate risk event however will be today with the release of the FOMC minutes during the European evening. “Provided that we remain under pinned by the 1.6952/1.6845 support an immediate upside bias is preserved. Above 1.7205 will trigger a move to the 50% retracement at 1.7331”, observed Karen Jones, Head of FICC Technical Analysis at Commerzbank.
GBP/USD levels to watch
The pair is now losing 0.11% at 1.7113 with the immediate support at 1.7085 (low Jul.8) followed by 1.7081 (38.2% of 1.6920-1.7180) and then 1.7050 (50% of 1.6920-1.7180). On the upside, a break above 1.7147 (high Jul.8) would open the door to 1.7172 (high Jul.7) and finally 1.7180 (2014 high Jul.2).