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4 Oct 2013
GBP/USD bounces off 1.6040
FXstreet.com (Edinburgh) -After posting weekly lows sub 1.6040 the sterling sparked a small recovery lifting the GBP/USD to the current region of 1.6070/75.
GBP/USD weaker on technicals, USD
According to many analysts, technical levels would be behind today’s steep decline of the pair, in combination with a firmer tone from the greenback, recovering part of recent strong losses. The next big event for the sterling would be the BoE MPC meeting due next Thursday, although market consensus practically rule out any major announcements. According to Jane Foley, Senior Currency Strategist at Rabobak, “We expect the BoE’s October policy meeting to pass without event. The lack of fresh upside in market rates in recent weeks has reduced the pressure on the BoE to explain its policy position while the better tone in UK economic data suggests the voting pattern of September, in which there was no support for additional QE, is likely to be repeated”
GBP/USD levels to consider
At the moment the pair is losing 0.09% at 1.6140 with the immediate support at 1.6117 (MA200h) followed by 1.6109 (MA10d) and then 1.6100 (low Sep.30). On the flip side, a breakout of 1.6240 (high Oct.3) would open the door to 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1).
GBP/USD weaker on technicals, USD
According to many analysts, technical levels would be behind today’s steep decline of the pair, in combination with a firmer tone from the greenback, recovering part of recent strong losses. The next big event for the sterling would be the BoE MPC meeting due next Thursday, although market consensus practically rule out any major announcements. According to Jane Foley, Senior Currency Strategist at Rabobak, “We expect the BoE’s October policy meeting to pass without event. The lack of fresh upside in market rates in recent weeks has reduced the pressure on the BoE to explain its policy position while the better tone in UK economic data suggests the voting pattern of September, in which there was no support for additional QE, is likely to be repeated”
GBP/USD levels to consider
At the moment the pair is losing 0.09% at 1.6140 with the immediate support at 1.6117 (MA200h) followed by 1.6109 (MA10d) and then 1.6100 (low Sep.30). On the flip side, a breakout of 1.6240 (high Oct.3) would open the door to 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1).