23 Apr 2014
GBP/USD grinds lower near 1.6770
FXStreet (Edinburgh) - The sterling extends its correction lower on Wednesday, pushing the GBP/USD to the area of 1.6780/70 from session tops near 1.6830.
GBP/USD lower on risk aversion
The selling interest is prevailing amongst traders on Wednesday, with spot unable to sustain recent levels above the 1.6800 handle. Not much to say regarding the data front, with the BoE minutes being a non event largely anticipated by traders and UK’s Public Sector Net Borrowing bettering expectations. Analyst Ross Walker at RBS commented, “Overall, there is little sense in the April Minutes of any meaningful shift in the MPC's policy bias or signalling… Still, the fall in the unemployment rate below the 7% threshold opens the door to greater hawkish dissent and the May Inflation Report has assumed a much greater significance – prior to the latest labour market data, the May Report seemed more likely to be something of a holding operation”.
GBP/USD levels to consider
The pair is now retreating 0.32% at 1.6769 with the immediate support at 1.6721 (low Apr.16) followed by 1.6708 (21-d MA) and finally 1.6700 (psychological level). On the upside, a breakout of 1.6842 (2014 high Apr.17) would target 1.6845 (high Nov.18 2009) and then 1.6879 (high Nov.16 2009).
GBP/USD lower on risk aversion
The selling interest is prevailing amongst traders on Wednesday, with spot unable to sustain recent levels above the 1.6800 handle. Not much to say regarding the data front, with the BoE minutes being a non event largely anticipated by traders and UK’s Public Sector Net Borrowing bettering expectations. Analyst Ross Walker at RBS commented, “Overall, there is little sense in the April Minutes of any meaningful shift in the MPC's policy bias or signalling… Still, the fall in the unemployment rate below the 7% threshold opens the door to greater hawkish dissent and the May Inflation Report has assumed a much greater significance – prior to the latest labour market data, the May Report seemed more likely to be something of a holding operation”.
GBP/USD levels to consider
The pair is now retreating 0.32% at 1.6769 with the immediate support at 1.6721 (low Apr.16) followed by 1.6708 (21-d MA) and finally 1.6700 (psychological level). On the upside, a breakout of 1.6842 (2014 high Apr.17) would target 1.6845 (high Nov.18 2009) and then 1.6879 (high Nov.16 2009).