29 Oct 2013
GBP/USD dropping 40 pips
FXstreet.com (London) - GBP/USD has dropped 40 pips and eyes towards the 1.6000 handle.
Despite a series of negative data from the US, the dollar has gained ground and taking Sterling down to meet a low of 1.6030. There is currently speculation that BoE may use the publication of its next Inflation Report on November 13 to indicate that it may be hiking interest rates at the start of 2016 rather than later that year. “This would be positive for sterling, although we would warn that with so much good news already in the price, that further upside for the pound from current levels could be tough” – Jane Foley, Currency Strategist at Rabobank.
GBP/USD Levels
The 20 DMA is 1.6097, the 50 DMA is 1.5909 and the 200 DMA is 1.5482. RSI (14) reads 54.31. Supports are ascending from 1.5940, 1.5980, 1.6018, 1.6033, 1.6108, 1.6124, 1.6160, 1.6207 and 1.6260.
Despite a series of negative data from the US, the dollar has gained ground and taking Sterling down to meet a low of 1.6030. There is currently speculation that BoE may use the publication of its next Inflation Report on November 13 to indicate that it may be hiking interest rates at the start of 2016 rather than later that year. “This would be positive for sterling, although we would warn that with so much good news already in the price, that further upside for the pound from current levels could be tough” – Jane Foley, Currency Strategist at Rabobank.
GBP/USD Levels
The 20 DMA is 1.6097, the 50 DMA is 1.5909 and the 200 DMA is 1.5482. RSI (14) reads 54.31. Supports are ascending from 1.5940, 1.5980, 1.6018, 1.6033, 1.6108, 1.6124, 1.6160, 1.6207 and 1.6260.