11 Jul 2013
GBP/USD rallies to 1.5196 high
FXstreet.com (London) - GBP/USD rallied yesterday, initially drifting higher from the 1.4860/1.4900 area to rocketing to 1.5196 after a period of consolidation and the FOMC minutes.
Robert Henderson at NAB markets research said the Fed Minutes showed that "many members indicated that further improvement in the outlook for the labour market would be required before it would be appropriate to slow the pace of asset purchases.” However, "some" members said they would want to see more evidence that the projected acceleration in economic activity was happening before taking that action. But "several members judged that a reduction in asset purchases would likely soon be warranted".
GBP/USD strong reversal
Karen Jones, Chief Analyst at Commerzbank said GBP/USD has seen a strong reversal from support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low. “The Elliot wave count is implying that this is corrective only and suggests a move to 1.5220. Between here and 1.5305 we should see the market fail again”. She said, provided it does so, attention should revert to the 1.4854/32 support. “Above 1.5305 neutralises the immediate outlook for recovery to the 1.5530/1.5613 band, the 78.6% retracement and 200 day ma”.
Robert Henderson at NAB markets research said the Fed Minutes showed that "many members indicated that further improvement in the outlook for the labour market would be required before it would be appropriate to slow the pace of asset purchases.” However, "some" members said they would want to see more evidence that the projected acceleration in economic activity was happening before taking that action. But "several members judged that a reduction in asset purchases would likely soon be warranted".
GBP/USD strong reversal
Karen Jones, Chief Analyst at Commerzbank said GBP/USD has seen a strong reversal from support at 1.4854/32, the 61.8% retracement of the 2009 move higher and the March low. “The Elliot wave count is implying that this is corrective only and suggests a move to 1.5220. Between here and 1.5305 we should see the market fail again”. She said, provided it does so, attention should revert to the 1.4854/32 support. “Above 1.5305 neutralises the immediate outlook for recovery to the 1.5530/1.5613 band, the 78.6% retracement and 200 day ma”.