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10 Sep 2013
GBP/USD flirting with June highs of 1.5753
FXstreet.com (Athens)- The GBP/USD is hovering steadily above 1.5700 area, after having smashed the crucial support of 1.5650.
The GBP/USD “eyes” 1.5753 area, June highs; will tomorrow UK jobs data give additional boost?
The cable did find solid support since yesterday, as the Chancellor of the Exchequer voiced his support for the BoE forward guidance. What’s more, the RICS House Price balance hit a November 2006 figure, showing that the UK economy is well back on track. On the other side of the Atlantic ocean, we are ahead of a very quiet calendar day. But the truth is that investors should see what lies behind the curtains regarding the massive depreciation of the “greenback.” Thereby, a logical justification for the extended dollar slide rests with a deleveraging of the Taper premium that the dollar has used to advance alongside with equities. Yet, investors should be aware of this proposition which seems very dubious, while we have no clear data on the Fed downshift (time, pace, amount of deleveraging each month) etc.
Technical Analysis and Strategic Bias on GBP/USD
Traders that are in favor of the GBP/USD might find important to point out that besides the “cable” and the GBP/JPY, the sterling has not done much. On the other side, a break of June highs, would bring bulls near to their target as of 1.5600. According to Karen Jones, Head Technical Analyst at Commerzbank, suggests that “GBP/USD is trying to break through the 1.5716/52 resistance area, the recent high and the high made in June. In this vicinity we also find the 200 week ma and the 61.8% retracement of the move seen in 2013. The risk remains for failure here. If not, the 1.5800 region will be in focus. While above the 1.5541 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.”
The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15-minutes timeframe chart. At the time of writing, the pair is trading at 1.5702, up 0.02%. Daily pivot point support can be found at 1.5658, 1.5616, 1.5577, and resistance at 1.5773, 1.5812 and 1.5863, respectively.
The GBP/USD “eyes” 1.5753 area, June highs; will tomorrow UK jobs data give additional boost?
The cable did find solid support since yesterday, as the Chancellor of the Exchequer voiced his support for the BoE forward guidance. What’s more, the RICS House Price balance hit a November 2006 figure, showing that the UK economy is well back on track. On the other side of the Atlantic ocean, we are ahead of a very quiet calendar day. But the truth is that investors should see what lies behind the curtains regarding the massive depreciation of the “greenback.” Thereby, a logical justification for the extended dollar slide rests with a deleveraging of the Taper premium that the dollar has used to advance alongside with equities. Yet, investors should be aware of this proposition which seems very dubious, while we have no clear data on the Fed downshift (time, pace, amount of deleveraging each month) etc.
Technical Analysis and Strategic Bias on GBP/USD
Traders that are in favor of the GBP/USD might find important to point out that besides the “cable” and the GBP/JPY, the sterling has not done much. On the other side, a break of June highs, would bring bulls near to their target as of 1.5600. According to Karen Jones, Head Technical Analyst at Commerzbank, suggests that “GBP/USD is trying to break through the 1.5716/52 resistance area, the recent high and the high made in June. In this vicinity we also find the 200 week ma and the 61.8% retracement of the move seen in 2013. The risk remains for failure here. If not, the 1.5800 region will be in focus. While above the 1.5541 2 month up channel, we remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.”
The FXstreet.com Trend Index shows the pair to be strongly bullish in the 15-minutes timeframe chart. At the time of writing, the pair is trading at 1.5702, up 0.02%. Daily pivot point support can be found at 1.5658, 1.5616, 1.5577, and resistance at 1.5773, 1.5812 and 1.5863, respectively.