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28 Jan 2015
GBP/USD recovers to 1.5180
FXStreet (Edinburgh) - The sterling is extending its rebound from daily lows, now lifting GBP/USD back to the 1.5181/85 band.
GBP/USD eyes on FOMC
It is a positive first half of the week for the pound so far, with spot coming up from the mid-1.4900s to clinch the low-1.5200s on Tuesday. Disappointing GDP results during the fourth quarter on Tuesday sparked a logial albeit short-lived knee-jerk to 1.5060, although the pair managed to leave behind those results and escalate to levels beyond 1.5200, all bolstered by a renewed sentiment towards the risk appetite.
Nothing of note today in the UK economy, whereas the FOMC meeting is posed to be the most relevant event this week. Strategist Prashant Newnaha at TD Securities added “While we do not expect any blockbuster shifts in the FOMC’s bias later today, we look for the Fed to finally drop the “considerable time” language, sticking with the “patient” language that was introduced at the December meeting”.
GBP/USD key levels
At the moment the pair is losing 0.15% at 1.5179 with the next support at 1.5121 (10-d MA) followed by 1.5060 (low Jan.27) and then 1.4972 (low Jan.26). On the flip side, a breakout of 1.5223 (high Jan.27) would aim for 1.5235 (high Jan.16) and finally 1.5270 (high Jan.14).
GBP/USD eyes on FOMC
It is a positive first half of the week for the pound so far, with spot coming up from the mid-1.4900s to clinch the low-1.5200s on Tuesday. Disappointing GDP results during the fourth quarter on Tuesday sparked a logial albeit short-lived knee-jerk to 1.5060, although the pair managed to leave behind those results and escalate to levels beyond 1.5200, all bolstered by a renewed sentiment towards the risk appetite.
Nothing of note today in the UK economy, whereas the FOMC meeting is posed to be the most relevant event this week. Strategist Prashant Newnaha at TD Securities added “While we do not expect any blockbuster shifts in the FOMC’s bias later today, we look for the Fed to finally drop the “considerable time” language, sticking with the “patient” language that was introduced at the December meeting”.
GBP/USD key levels
At the moment the pair is losing 0.15% at 1.5179 with the next support at 1.5121 (10-d MA) followed by 1.5060 (low Jan.27) and then 1.4972 (low Jan.26). On the flip side, a breakout of 1.5223 (high Jan.27) would aim for 1.5235 (high Jan.16) and finally 1.5270 (high Jan.14).