29 Oct 2013
GBP/USD holding the 1.6000 handle
FXstreet.com (London) - GBP/USD has recorded a new low ahead of 1.6018 support and has since ticked up into 1.6040.
Lee Hardman, strategist at Bank of Tokyo Mitsubishi UFJ explained the pound has underperformed which has been triggered by EUR/GBP.“Fundamentally the pound is being undermined by the market moving to delay the expected timing and scale of monetary tightening from the BoE…the sharp decline in UK yields continues to highlight that they remain tightly linked to developments in US yields with delayed Fed QE tapering expectations also serving to undermine the pound in the near-term, even as the UK economy continues to remain in a robust recovery phase”.
GBP/USD Levels
The 20 DMA is 1.6099, the 50 DMA is 1.5899 and the 200 DMA is 1.5480. RSI (18) reads 56.98. Support is coming in from, 1.5940, 1.5980,1.6018 and 1.6033. Spot is currently 1.6043 while resistances are 1.6124, 1.6160, 1.6207 and
1.6260.
Lee Hardman, strategist at Bank of Tokyo Mitsubishi UFJ explained the pound has underperformed which has been triggered by EUR/GBP.“Fundamentally the pound is being undermined by the market moving to delay the expected timing and scale of monetary tightening from the BoE…the sharp decline in UK yields continues to highlight that they remain tightly linked to developments in US yields with delayed Fed QE tapering expectations also serving to undermine the pound in the near-term, even as the UK economy continues to remain in a robust recovery phase”.
GBP/USD Levels
The 20 DMA is 1.6099, the 50 DMA is 1.5899 and the 200 DMA is 1.5480. RSI (18) reads 56.98. Support is coming in from, 1.5940, 1.5980,1.6018 and 1.6033. Spot is currently 1.6043 while resistances are 1.6124, 1.6160, 1.6207 and
1.6260.