31 Oct 2013
GBP/USD grinding lower, 1.60 on sight
FXstreet.com (Edinburgh) -The sterling is extending its downbeat momentum on Thursday, with the GBP/USD following the rest of the risk-associated assets.
GBP/USD hurt by FOMC
The pair found good support in the boundaries of the psychological level at 1.6000 after the balanced tone from the FOMC surprised investors on Wednesday, sparking a rally of the world’s reserve across the board. In the data front, housing prices gauged by Nationwide advanced beyond expectations during October, 1.0% inter-month and 5.8% over the last twelve months. “We expect cable to remain close to current levels on a 1 to 3 mth view and then move back below the GBP/USD1.60 area on the anticipation that the USD regains some traction ahead of the March FOMC”, observed Jane Foley, Strategist at Rabobank.
GBP/USD key levels
The pair is now losing 0.13% at 1.6015 with the immediate support at 1.5999 (low Oct.30) ahead of 1.5980 (76.4% of 1.5894-1.6258) and then 1.5940 (low Oct.17). On the flip side, a breakout of 1.6022 (low Oct.29) would expose 1.6079 (high Oct.30) and then 1.6086 (MA30d).
GBP/USD hurt by FOMC
The pair found good support in the boundaries of the psychological level at 1.6000 after the balanced tone from the FOMC surprised investors on Wednesday, sparking a rally of the world’s reserve across the board. In the data front, housing prices gauged by Nationwide advanced beyond expectations during October, 1.0% inter-month and 5.8% over the last twelve months. “We expect cable to remain close to current levels on a 1 to 3 mth view and then move back below the GBP/USD1.60 area on the anticipation that the USD regains some traction ahead of the March FOMC”, observed Jane Foley, Strategist at Rabobank.
GBP/USD key levels
The pair is now losing 0.13% at 1.6015 with the immediate support at 1.5999 (low Oct.30) ahead of 1.5980 (76.4% of 1.5894-1.6258) and then 1.5940 (low Oct.17). On the flip side, a breakout of 1.6022 (low Oct.29) would expose 1.6079 (high Oct.30) and then 1.6086 (MA30d).