18 Sep 2013
GBP/USD faded to support ahead of FOMC
FXstreet.com (London) - GBP/USD has climbed from 1.5900 to reach 1.5982, breaking through Mondays resistance 1.5960 to where it now currently trades back to.
Research teams at TD Securities said the BoE minutes were the highlight macro development overnight, with a more optimistic tone helping to boost Sterling to the top of the performance rankings among the G10 currencies. “The MPC acknowledged the better UK activity lately and upgraded their growth outlook for the remainder of the year, but perhaps more importantly they did not make any attempt to push back on the recent rise in Gilt yields. 10-yr Gilts are now testing 3.0% again as a result. UK-US short term yield spreads are not as tightly correlated with the spot rate in GBP/USD, but the sharp widening of in the spread overnight certainly helps support a higher GBP/USD. All eyes now shift to the Fed for the next sharp move”.
GBP/USD levels
Indicators suggest momentum has slowed down. The 20 DMA is 1.5657, the 50 DMA is 1.5473 and the 200 DMA is 1.5486. Supports are ascending 1.5936 and 1.5963 where the pair trades at currently while resistances are 1.5992, 1.6010, 1.6040 and 1.6080.
Research teams at TD Securities said the BoE minutes were the highlight macro development overnight, with a more optimistic tone helping to boost Sterling to the top of the performance rankings among the G10 currencies. “The MPC acknowledged the better UK activity lately and upgraded their growth outlook for the remainder of the year, but perhaps more importantly they did not make any attempt to push back on the recent rise in Gilt yields. 10-yr Gilts are now testing 3.0% again as a result. UK-US short term yield spreads are not as tightly correlated with the spot rate in GBP/USD, but the sharp widening of in the spread overnight certainly helps support a higher GBP/USD. All eyes now shift to the Fed for the next sharp move”.
GBP/USD levels
Indicators suggest momentum has slowed down. The 20 DMA is 1.5657, the 50 DMA is 1.5473 and the 200 DMA is 1.5486. Supports are ascending 1.5936 and 1.5963 where the pair trades at currently while resistances are 1.5992, 1.6010, 1.6040 and 1.6080.