7 Aug 2013
GBP/USD treading water around 1.5500
FXstreet.com (Edinburgh) -The sterling keep the upper band of today’s range, with the GBP/USD gyrating around 1.5490/1.5500 as the US session is drawing to a close.
GBP/USD propelled by BoE
Governor Mark Carney’s forward guidance, linking a 7.0% unemployment rate threshold with rates was less dovish than the FX community was expecting, catapulting the pair from lows in the boundaries of 1.5200 to multi-week highs around 1.5530. Alistair Cotton, Senior Analyst at Currencies Direct assessed, “For businesses and consumers the announcement is very bullish and is clearly designed to boost confidence. By tying policy to unemployment, which is a clearly measured and very visible economic variable, the Bank is making a communication statement allowing the average man in the street or business owner a much more visible and transparent measure of the Bank’s thinking”.
GBP/USD levels to watch
At the moment the pair is advancing 0.97% at 1.5499 with the next hurdle at 1.5540 (MA200d) followed by 1.5600 (psychological level) and finally 1.5678 (high Jun.19). On the downside, a breach of 1.5205 (low Aug.7) would aim for 1.5198 (38.2% of 1.5435-1.4814) and then 1.5104 (low Aug.1).
GBP/USD propelled by BoE
Governor Mark Carney’s forward guidance, linking a 7.0% unemployment rate threshold with rates was less dovish than the FX community was expecting, catapulting the pair from lows in the boundaries of 1.5200 to multi-week highs around 1.5530. Alistair Cotton, Senior Analyst at Currencies Direct assessed, “For businesses and consumers the announcement is very bullish and is clearly designed to boost confidence. By tying policy to unemployment, which is a clearly measured and very visible economic variable, the Bank is making a communication statement allowing the average man in the street or business owner a much more visible and transparent measure of the Bank’s thinking”.
GBP/USD levels to watch
At the moment the pair is advancing 0.97% at 1.5499 with the next hurdle at 1.5540 (MA200d) followed by 1.5600 (psychological level) and finally 1.5678 (high Jun.19). On the downside, a breach of 1.5205 (low Aug.7) would aim for 1.5198 (38.2% of 1.5435-1.4814) and then 1.5104 (low Aug.1).