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13 Mar 2014
GBP/USD tucking in below 1.67 handle
FXStreet (Guatemala) - GBP/USD met keen supply eventually on the 1.67 handle at 1.6720 and is pulling in below the handle and now testing the 1.6680 support.
GBP/USD suffered on the back of positive data coming from the US earlier in the form of the Initial Jobless Claims that arrived 315k vs 330k expected. However, Lee Hardman, Currency Analyst at The Bank of Tokyo-Mitsubishi explained that overall, the US dollar has continued to weaken in the Asian trading session with the dollar index extending its modest decline since the beginning of February. The US dollar has been undermined in the near-term by the recent economic slowdown in the US which has prompted the market to dampen Fed monetary tightening expectations ahead although it is still expected to taper QE by a further USD10 billion at next week’s FOMC meeting. The release yesterday of prepared remarks from Fed Vice Chairman nominee Stanley Fischer ahead of his confirmation hearing today before the Senate Banking Committee revealed that he supports the “continuation of an expansionary monetary policy even though the degree of expansion is being gradually and cautiously cut back”.
GBP/USD Levels
The 20 DMA is 1.6678, the 50 DMA is 1.6540 and the 200 DMA is 1.6000. RSI (14) reads 44.29. Supports are ascending from 1.6538, 1.6560, 1.6596, and 1.6636. spot is 1.6680 while resistance are 1.6706, 1.6745, and 1.6787.
GBP/USD suffered on the back of positive data coming from the US earlier in the form of the Initial Jobless Claims that arrived 315k vs 330k expected. However, Lee Hardman, Currency Analyst at The Bank of Tokyo-Mitsubishi explained that overall, the US dollar has continued to weaken in the Asian trading session with the dollar index extending its modest decline since the beginning of February. The US dollar has been undermined in the near-term by the recent economic slowdown in the US which has prompted the market to dampen Fed monetary tightening expectations ahead although it is still expected to taper QE by a further USD10 billion at next week’s FOMC meeting. The release yesterday of prepared remarks from Fed Vice Chairman nominee Stanley Fischer ahead of his confirmation hearing today before the Senate Banking Committee revealed that he supports the “continuation of an expansionary monetary policy even though the degree of expansion is being gradually and cautiously cut back”.
GBP/USD Levels
The 20 DMA is 1.6678, the 50 DMA is 1.6540 and the 200 DMA is 1.6000. RSI (14) reads 44.29. Supports are ascending from 1.6538, 1.6560, 1.6596, and 1.6636. spot is 1.6680 while resistance are 1.6706, 1.6745, and 1.6787.