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12 Jun 2013
GBP/USD keeps highs above 1.5650
FXstreet.com (Barcelona) - The GBP/USD remains buoyant on Wednesday, hovering over 4-month highs in the area of 1.5665/70 after upbeat data from the UK employment figures.
Upside momentum remains
Today’s positive results added to the generalized optimism surrounding the sterling, despite the fragile background of the UK economy. In the opinion of Stephen Gallo, Strategist at BMO, “We believe that the balance of factors will lead to a modest GBP depreciation over the next year, whilst stale short positioning and a reigniting of credit channels and asset appreciation should remain important upside risks… Additional BoE QE injections still for now appear to be a more distant, last-resort option for policy makers given the BoE’s new powers.
GBP/USD levels to watch
At the moment the pair is advancing 0.12% at 1.5664 with the next resistance at 1.5685 (high Jun.6) followed by 1.5690 (high Feb.13) and finally 1.5703 (MA200d). On the downside, a breach of 1.5521 (low Jun.11) would open the door to 1.5488 (low Jun.7) ahead of 1.5452 (MA10d).
Upside momentum remains
Today’s positive results added to the generalized optimism surrounding the sterling, despite the fragile background of the UK economy. In the opinion of Stephen Gallo, Strategist at BMO, “We believe that the balance of factors will lead to a modest GBP depreciation over the next year, whilst stale short positioning and a reigniting of credit channels and asset appreciation should remain important upside risks… Additional BoE QE injections still for now appear to be a more distant, last-resort option for policy makers given the BoE’s new powers.
GBP/USD levels to watch
At the moment the pair is advancing 0.12% at 1.5664 with the next resistance at 1.5685 (high Jun.6) followed by 1.5690 (high Feb.13) and finally 1.5703 (MA200d). On the downside, a breach of 1.5521 (low Jun.11) would open the door to 1.5488 (low Jun.7) ahead of 1.5452 (MA10d).