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26 Feb 2014
GBP/USD consolidates below 1.6700
FXStreet (Edinburgh) - The sterling is now extending the congestion pattern below the 1.6700 handle on Wednesday, taking the GBP/USD to trade in a narrow range around 1.6680/90.
GBP/USD calmer post-UK GDP
After a short-lived spike to levels beyond the key barrier at 1.6700, the pair pared back those earlier gains and is now back in the 1.6680/90 comfort zone. Ahead in the week, the UK docket includes a gauge of the Consumer Confidence by Gfk, Nationwide Housing Prices and a speech by Governor M.Carney, all due on Friday. “GDP growth remained strong in Q4 2013 (at +0.7% q/q, after +0.8% q/q in Q3). Moreover the growth breakdown is reassuring. Private consumption was again a key driver of growth (contributing +0.3 point of GDP), but investment and net exports also underpinned GDP growth (+0.3 and +0.4 point of GDP respectively)”, commented Catherine Stephan, Analyst at BNP Paribas.
GBP/USD significant levels
The pair is now gaining 0.09% at 1.6681 with the next up-barrier at 1.6728 (high Feb.25) followed by 1.6741 (high Feb.18) and then 1.6800 (psychological level). On the downside, a breach of 1.6642 (low Feb.25) would open the door to 1.6583 (low Feb.24) and finally 1.6541 (21-d MA).
GBP/USD calmer post-UK GDP
After a short-lived spike to levels beyond the key barrier at 1.6700, the pair pared back those earlier gains and is now back in the 1.6680/90 comfort zone. Ahead in the week, the UK docket includes a gauge of the Consumer Confidence by Gfk, Nationwide Housing Prices and a speech by Governor M.Carney, all due on Friday. “GDP growth remained strong in Q4 2013 (at +0.7% q/q, after +0.8% q/q in Q3). Moreover the growth breakdown is reassuring. Private consumption was again a key driver of growth (contributing +0.3 point of GDP), but investment and net exports also underpinned GDP growth (+0.3 and +0.4 point of GDP respectively)”, commented Catherine Stephan, Analyst at BNP Paribas.
GBP/USD significant levels
The pair is now gaining 0.09% at 1.6681 with the next up-barrier at 1.6728 (high Feb.25) followed by 1.6741 (high Feb.18) and then 1.6800 (psychological level). On the downside, a breach of 1.6642 (low Feb.25) would open the door to 1.6583 (low Feb.24) and finally 1.6541 (21-d MA).