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2 Aug 2013
GBP/USD in highs on better PMI
FXstreet.com (Edinburgh) -The better tone in the sterling is now pushing the GBP/USD to fresh highs in the boundaries of 1.5180 after the Construction PMI in the UK exceeded expectations in July.
GBP/USD extends the correction
The pair is prolonging its correction on Friday, bouncing from overnight lows around 1.5100 the figure, as the incipient recovery in the British economy continues to gather traction. With the BoE now out of the way, the next big risk event for the pound will be next week’s Inflation Report, where the BoE would decide regarding the adoption of forward guidance and/or economic thresholds for the monetary policy. In the opinion of James Knightley, Strategist at ING, “We don’t expect the BoE to implement any further direct stimulus (rate cuts or extra QE), leaving forward guidance the policy option of choice as the BoE seeks to keep current accommodative monetary conditions in place to ensure the recovery continues”.
GBP/USD key levels
At the moment the pair is up 0.29% at 1.5163 and a surpass of 1.5198 (38.2% of 1.5435-1.4814) would open the door to 1.5354 (high Jul.31) and then 1.5300 (psychological level). On the flip side, the initial support lies at 1.5080 (low Jul.17) followed by 1.5051 (50% of 1.5435-1.4814) and finally 1.5045 (low Jul.16).
GBP/USD extends the correction
The pair is prolonging its correction on Friday, bouncing from overnight lows around 1.5100 the figure, as the incipient recovery in the British economy continues to gather traction. With the BoE now out of the way, the next big risk event for the pound will be next week’s Inflation Report, where the BoE would decide regarding the adoption of forward guidance and/or economic thresholds for the monetary policy. In the opinion of James Knightley, Strategist at ING, “We don’t expect the BoE to implement any further direct stimulus (rate cuts or extra QE), leaving forward guidance the policy option of choice as the BoE seeks to keep current accommodative monetary conditions in place to ensure the recovery continues”.
GBP/USD key levels
At the moment the pair is up 0.29% at 1.5163 and a surpass of 1.5198 (38.2% of 1.5435-1.4814) would open the door to 1.5354 (high Jul.31) and then 1.5300 (psychological level). On the flip side, the initial support lies at 1.5080 (low Jul.17) followed by 1.5051 (50% of 1.5435-1.4814) and finally 1.5045 (low Jul.16).