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18 Jun 2013
GBP/USD volatile post CPI
FXstreet.com (London) - GBP/USD has printed a high through 1.5700 to 1.5710 the high in the 5 minute chart only to reverse back into 1.5670/90 territories.
A relatively mixed bag of data which was released has left the pair at a cross roads while we await the FOMC tomorrow and other key data lined up form the US for this afternoon. In the UK, core CPI YoY gave the pound a lift coming in beating expectations at 2.2% vrs 2.1% expected and up on 2% previous. The market has seen a raft of recently bullish UK data, and these numbers are likely to keep the pair bid and supported for the time being. The pair has previously been feeling a little heavy around the 200d ma, but with such a print in the green this zone remains with sight.
GBP/USD levels
Karan Jones, Analyst at Commerzbank had previously suggested that the 200 d ma would be a tuff area to crack for the pair. With the previous reversal, she also said a break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5364 en route to the support line at 1.5054. As turbulent as we have seen how these markets can be of late, above Thursday’s 1.5736 high lies the 1.5782 61.8% retracement of this years move, 1.5794 200 week moving average is located here and beyond here lies 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.
A relatively mixed bag of data which was released has left the pair at a cross roads while we await the FOMC tomorrow and other key data lined up form the US for this afternoon. In the UK, core CPI YoY gave the pound a lift coming in beating expectations at 2.2% vrs 2.1% expected and up on 2% previous. The market has seen a raft of recently bullish UK data, and these numbers are likely to keep the pair bid and supported for the time being. The pair has previously been feeling a little heavy around the 200d ma, but with such a print in the green this zone remains with sight.
GBP/USD levels
Karan Jones, Analyst at Commerzbank had previously suggested that the 200 d ma would be a tuff area to crack for the pair. With the previous reversal, she also said a break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5364 en route to the support line at 1.5054. As turbulent as we have seen how these markets can be of late, above Thursday’s 1.5736 high lies the 1.5782 61.8% retracement of this years move, 1.5794 200 week moving average is located here and beyond here lies 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.