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15 May 2014
GBP/USD survived, but depressed at 1.6770
FXStreet (Moscow) - GBP/USD started the day at 1.6765, reached 1.6775 session high, and is trading somewhere around at the moment.
Why to cry?
The pound was desperate after the depressing labor data, and mixed Carney comments within the Quarterly Inflation report convinced the market there will be no rate hikes from the BOE this year. The yesterday's behavior of the traders was rather strange given the widely known reserved and dovish position of the regulator. There were very few chances to hear any aggressive comments after thousands of speeches confirming the monetary authorities are not ready for more tightening soon. And these chances didn’t materialize, and the market was disappointed even though there were enough reasons to be happy – revised higher forecasts, hints on the recovering economy that will finally make the BOE raise the rates etc. Thus, the popularity of the pound could be still on table, and the current levels may be considered as very attractive to enter with longs.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6799, with support below at 1.6722, 1.6677, 1.6600 with resistance above at 1.6844, 1.6921, and 1.6966. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6889, and the daily 20EMA flat at 1.6831. Hourly RSI is bearish at 39.
Why to cry?
The pound was desperate after the depressing labor data, and mixed Carney comments within the Quarterly Inflation report convinced the market there will be no rate hikes from the BOE this year. The yesterday's behavior of the traders was rather strange given the widely known reserved and dovish position of the regulator. There were very few chances to hear any aggressive comments after thousands of speeches confirming the monetary authorities are not ready for more tightening soon. And these chances didn’t materialize, and the market was disappointed even though there were enough reasons to be happy – revised higher forecasts, hints on the recovering economy that will finally make the BOE raise the rates etc. Thus, the popularity of the pound could be still on table, and the current levels may be considered as very attractive to enter with longs.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6799, with support below at 1.6722, 1.6677, 1.6600 with resistance above at 1.6844, 1.6921, and 1.6966. Hourly Moving Averages are largely bearish, with the 200SMA at 1.6889, and the daily 20EMA flat at 1.6831. Hourly RSI is bearish at 39.