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28 Mar 2014
GBP/USD muted after UK data
FXStreet (Edinburgh) - The sterling kept the composure after the UK GDP data, with the GBP/USD hovering over 1.6620/15.
GBP/USD looks to consolidate above 1.6600
The pair remains within the recent range after the UK economy expanded 0.7% inter-quarter during Q4 and 2.7% on a yearly basis, broadly in line with market consensus. Further data showed that UK’s Current Account deficit narrowed to £22.4 billion in Q4 from £22.8 billion in the previous period, albeit missing forecasts for a £14 billion deficit. According to Emmanuel Ng, Strategist at OCBC Bank, “the 55-day MA (1.6560) expected to provide a near term floor if 1.6600 gives way. On the top side, expect resistance towards 1.6670 while we remain on the sidelines for now”.
GBP/USD significant levels
The pair is now losing 0.01% at 1.6609 and a break below 1.6563 (10-d MA) would target 1.6560 (55-d MA) and finally 1.6500 (psychological level). On the upside, the initial hurdle aligns at 1.6648 (high Mar.27) followed by 1.6655 (high Mar.19) and then 1.6667 (high Mar.17).
GBP/USD looks to consolidate above 1.6600
The pair remains within the recent range after the UK economy expanded 0.7% inter-quarter during Q4 and 2.7% on a yearly basis, broadly in line with market consensus. Further data showed that UK’s Current Account deficit narrowed to £22.4 billion in Q4 from £22.8 billion in the previous period, albeit missing forecasts for a £14 billion deficit. According to Emmanuel Ng, Strategist at OCBC Bank, “the 55-day MA (1.6560) expected to provide a near term floor if 1.6600 gives way. On the top side, expect resistance towards 1.6670 while we remain on the sidelines for now”.
GBP/USD significant levels
The pair is now losing 0.01% at 1.6609 and a break below 1.6563 (10-d MA) would target 1.6560 (55-d MA) and finally 1.6500 (psychological level). On the upside, the initial hurdle aligns at 1.6648 (high Mar.27) followed by 1.6655 (high Mar.19) and then 1.6667 (high Mar.17).