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20 May 2014
GBP/USD keeps the bid tone near 1.6850
FXStreet (Edinburgh) - The buying interest remains intact around the sterling on Tuesday, with the GBP/USD meandering around the 1.6845/50 region.
GBP/USD capped by 1.6870
Spot found decent support around the 1.6800 handle, although it could not follow through the area of 1.6870 after UK consumer prices surprised investors to the upside in April. In the meantime, the pair is trading well above the 1.6800 barrier ahead of tomorrow’s BoE minutes. Senior FX Strategist at RBS Paul Robson commented, “Last week we highlighted the shooting star candle and said the risk was for a test into the 1.6775/1.6820 support area (previous resistance), and maybe at a push we might see 1.65/1.66 at some stage”.
GBP/USD levels to watch
As of writing the pair is up 0.18% at 1.6843 with the next resistance at 1.6875 (high May 14) followed by 1.6883 (high May 13) and then 1.6903 (high May 12). On the flip side, a breakdown of 1.6802 (low May 20) would target 1.6784 (low May 16) en route to 1.6732 (low May 15).
GBP/USD capped by 1.6870
Spot found decent support around the 1.6800 handle, although it could not follow through the area of 1.6870 after UK consumer prices surprised investors to the upside in April. In the meantime, the pair is trading well above the 1.6800 barrier ahead of tomorrow’s BoE minutes. Senior FX Strategist at RBS Paul Robson commented, “Last week we highlighted the shooting star candle and said the risk was for a test into the 1.6775/1.6820 support area (previous resistance), and maybe at a push we might see 1.65/1.66 at some stage”.
GBP/USD levels to watch
As of writing the pair is up 0.18% at 1.6843 with the next resistance at 1.6875 (high May 14) followed by 1.6883 (high May 13) and then 1.6903 (high May 12). On the flip side, a breakdown of 1.6802 (low May 20) would target 1.6784 (low May 16) en route to 1.6732 (low May 15).