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23 Sep 2013
GBP/USD capped by 1.6040
FXstreet.com (Edinburgh) -The sterling is now following the risk trends, pushing the GBP/USD from peaks around 1.6040 to the current area of 1.6030/25 on Monday.
GBP/USD focus on UK GDP
The most relevant release in the UK economy ahead in the week will be the GDP figures during the second quarter, with prior estimates expecting the British economy to have expanded 0.7% inter-quarter. The result, should it comes as expected, would reinforce the recent positive momentum in the UK data, fuelling expectations of a rate hike sooner than the BoE’s estimates. Stephen Gallo, Strategist at BMO, suggested, “On a 2-3-month basis, we have already begun to think about the possibilities for a further move lower in GBP/USD back into the mid-1.50s in the pair, if the economy data respond modestly to the recent rise in UK rates as we expect them to. At the very least, we suspect that the more aggressive GBP bulls will at least pause in the week ahead until we receive the next batch of key UK data”.
GBP/USD levels to watch
The pair is now advancing 0.18% at 1.6036 facing the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and finally 1.6182 (high Jan.11). On the flip side, a breach of 1.5893 (low Sep.18) would open the door to 1.5886 (low Sep.17) and then 1.5869 (low Sep.16).
GBP/USD focus on UK GDP
The most relevant release in the UK economy ahead in the week will be the GDP figures during the second quarter, with prior estimates expecting the British economy to have expanded 0.7% inter-quarter. The result, should it comes as expected, would reinforce the recent positive momentum in the UK data, fuelling expectations of a rate hike sooner than the BoE’s estimates. Stephen Gallo, Strategist at BMO, suggested, “On a 2-3-month basis, we have already begun to think about the possibilities for a further move lower in GBP/USD back into the mid-1.50s in the pair, if the economy data respond modestly to the recent rise in UK rates as we expect them to. At the very least, we suspect that the more aggressive GBP bulls will at least pause in the week ahead until we receive the next batch of key UK data”.
GBP/USD levels to watch
The pair is now advancing 0.18% at 1.6036 facing the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and finally 1.6182 (high Jan.11). On the flip side, a breach of 1.5893 (low Sep.18) would open the door to 1.5886 (low Sep.17) and then 1.5869 (low Sep.16).