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17 Jun 2013
GBP/USD continues drifting higher
FXstreet.com (London) - GBP/USD is drifting higher still, from printing below the figure this morning to record recent highs in 1.5750’s.
GBPUSD has reclined a little back down along the 200d ma and is currently oscillating in the 1.5730 and 1.5740’s again while a bullish NAHB Housing Market Index was just printed for the Us economy as 52 against previous 44 and consensus of 45. The market is mostly awaiting FOMC and a raft of other data for an indication for where the next hint of any tapering might appear in the US. For the UK, we wait for further signs to see whether the economy can stay on track for a recovery.
GBP/USD downside risk
Technically GBP/USD may find it tuff to continue much higher until there are more confirmations that the risk of tapering the QE programme in the US will not be commencing in the near future and that the UK economy really is improving. Analyst at Commerzbank, Karen Jones, said a break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5352 en route to the base of the channel at 1.5044
GBPUSD has reclined a little back down along the 200d ma and is currently oscillating in the 1.5730 and 1.5740’s again while a bullish NAHB Housing Market Index was just printed for the Us economy as 52 against previous 44 and consensus of 45. The market is mostly awaiting FOMC and a raft of other data for an indication for where the next hint of any tapering might appear in the US. For the UK, we wait for further signs to see whether the economy can stay on track for a recovery.
GBP/USD downside risk
Technically GBP/USD may find it tuff to continue much higher until there are more confirmations that the risk of tapering the QE programme in the US will not be commencing in the near future and that the UK economy really is improving. Analyst at Commerzbank, Karen Jones, said a break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5352 en route to the base of the channel at 1.5044