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12 Sep 2013
GBP/USD holding the 1.5800 handle
FXstreet.com (London) - GBP/USD is holding the 1.5800 handle in a positive Sterling environment while we await the UK Inflation Report Hearings tomorrow.
GBP/USD got into deeper positive territory when the 7.7% result in the Unemployment Rate beat expectations, marginally, offering more good news for the economy. “As a consequence the market has had free reign to decide that the better tone of recent economic data means that the BoE could be one of the first G10 central banks to hike rates this cycle and this view has supported sterling”, explained Jane Foley, strategist at Rabobank. However, she went onto say, ”…high inflation has meant that UK consumers have suffered three years of falling real wages. This leaves the outlook for demand remains vulnerable. That said, UK consumers appear to be supporting consumption levels by savings less. While this is good for current growth levels, it may create problems for the longer term”.
GBP/USD Levels
The 20 DMA is 1.5608, the 50 DMA is 1.5397 and the 200 DMA is 1.5490. RSI (14) reads 77.52. Supports are ascending from 1.5556, 1.5603, 1.5625, 1.5681, 1.5730, 1.5753, 1.5781 and Spot is 1.5810. Next resistance comes in at 1.5845. Karen Jones, Chief Analyst at Commerzbank said that while above the 1.5557 2 month up channel, they remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.
GBP/USD got into deeper positive territory when the 7.7% result in the Unemployment Rate beat expectations, marginally, offering more good news for the economy. “As a consequence the market has had free reign to decide that the better tone of recent economic data means that the BoE could be one of the first G10 central banks to hike rates this cycle and this view has supported sterling”, explained Jane Foley, strategist at Rabobank. However, she went onto say, ”…high inflation has meant that UK consumers have suffered three years of falling real wages. This leaves the outlook for demand remains vulnerable. That said, UK consumers appear to be supporting consumption levels by savings less. While this is good for current growth levels, it may create problems for the longer term”.
GBP/USD Levels
The 20 DMA is 1.5608, the 50 DMA is 1.5397 and the 200 DMA is 1.5490. RSI (14) reads 77.52. Supports are ascending from 1.5556, 1.5603, 1.5625, 1.5681, 1.5730, 1.5753, 1.5781 and Spot is 1.5810. Next resistance comes in at 1.5845. Karen Jones, Chief Analyst at Commerzbank said that while above the 1.5557 2 month up channel, they remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.