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18 Mar 2014
GBP/USD climbs to 1.6620
FXStreet (Edinburgh) - After bottoming out near 1.6590, the GBP/USD is now picking up pace and recovering the 1.6615/20 region.
GBP/USD softer on risk aversion
Spot continues to recover the ground lost after a combination of risk-off trade and big selling orders dragged sterling to the boundaries of 1.6590 on Tuesday. In light of today’s speech by Governor M.Carney, strategists at the Swiss lender UBS assessed “While the external review itself has little bearing on monetary policy per se, investors should probably also look at sterling a bit more strategically and question, in the long term, whether current strength is not only sustainable but healthy. A strong financial account seemingly oblivious to valuation may provide a false sense of security, as by all accounts the currency now has the most to lose if risk appetite begins to turn”.
GBP/USD levels to consider
The pair is now losing 0.08% at 1.6622 with the next support at 1.6568 (low Mar.12) followed by 1.6500 (psychological level) and then 1.6425 (low Feb.12). On the flip side, a breakout of 1.6649 (high Mar.18) would aim for 1.6657 (10-d MA) and finally 1.6667 (high Mar.17).
GBP/USD softer on risk aversion
Spot continues to recover the ground lost after a combination of risk-off trade and big selling orders dragged sterling to the boundaries of 1.6590 on Tuesday. In light of today’s speech by Governor M.Carney, strategists at the Swiss lender UBS assessed “While the external review itself has little bearing on monetary policy per se, investors should probably also look at sterling a bit more strategically and question, in the long term, whether current strength is not only sustainable but healthy. A strong financial account seemingly oblivious to valuation may provide a false sense of security, as by all accounts the currency now has the most to lose if risk appetite begins to turn”.
GBP/USD levels to consider
The pair is now losing 0.08% at 1.6622 with the next support at 1.6568 (low Mar.12) followed by 1.6500 (psychological level) and then 1.6425 (low Feb.12). On the flip side, a breakout of 1.6649 (high Mar.18) would aim for 1.6657 (10-d MA) and finally 1.6667 (high Mar.17).