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28 Jan 2014
GBP/USD floating above 1.6600
FXstreet.com (Edinburgh) - The sterling is extending its bullish momentum on Tuesday, taking the GBP/USD to levels just above the 1.6600 handle ahead of key data due later.
GBP/USD eyes on UK’s GDP
Spot remains on its way to fully retrace the significant pullback last Friday, dipping to sub-1.65 levels soon after posting more than 2-year highs in the vicinity of 1.6670. The release of the preliminary GDP figures for the fourth quarter will be the most relevant event in the UK docket today, with market expectations pointing to an expansion of 0.7% inter-quarter and 2.8% on a yearly basis. According to Camilla Sutton, Chief FX Strategist at Scotiabank, argued the short-term technicals are mixed, “the MACD has shifted into buy territory but is lacking conviction. Support lies at the 50-day MA of 1.6384; while resistance lies at the recent high of 1.6668”.
GBP/USD levels to watch
At the moment the pair is up 0.21% at 1.6621 with the immediate resistance at 1.6668 (2014 high Jan.24) and then 1.6700 (psychological level). On the downside, the initial support aligns at 1.6452 (low Jan.22) ahead of 1.6400 (low Jan.21) and then 1.6396 (low Jan.20).
GBP/USD eyes on UK’s GDP
Spot remains on its way to fully retrace the significant pullback last Friday, dipping to sub-1.65 levels soon after posting more than 2-year highs in the vicinity of 1.6670. The release of the preliminary GDP figures for the fourth quarter will be the most relevant event in the UK docket today, with market expectations pointing to an expansion of 0.7% inter-quarter and 2.8% on a yearly basis. According to Camilla Sutton, Chief FX Strategist at Scotiabank, argued the short-term technicals are mixed, “the MACD has shifted into buy territory but is lacking conviction. Support lies at the 50-day MA of 1.6384; while resistance lies at the recent high of 1.6668”.
GBP/USD levels to watch
At the moment the pair is up 0.21% at 1.6621 with the immediate resistance at 1.6668 (2014 high Jan.24) and then 1.6700 (psychological level). On the downside, the initial support aligns at 1.6452 (low Jan.22) ahead of 1.6400 (low Jan.21) and then 1.6396 (low Jan.20).