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5 Jun 2014
GBP/USD breaks descending trend line
FXStreet (Guatemala) - GBP/USD is trading at 1.6812, up 0.45% on the day, having posted a daily high at 1.6827 and low at 1.6722.
GBP/USD sits at the top of its run from the depths of 1.67 handle and onto 1.68 and this has broken the descending trend-line’s resistance from the 1.6998 levels posted at the start of May. The action today has been around the Central banks in the main and strategists at RBS noted that the Bank of England MPC left monetary policy settings unaltered in June, as was universally expected (0.5% Bank Rate, £375bn stock of QE gilts). “There was no statement (also as expected) and the Minutes will be published at 09:30 on Wednesday 18 June, where we expect unanimous policy votes. The RBS forecast is for the first 25bp Bank Rate hike in August 2015, with Bank Rate reaching 1.0% by the end of 2015 and 2.0% at the end of 2016”.
GBP/USD, how high can it go?
Well, some analysts are not convinced that there is much more room for Sterling on the upside. Karen Jones, chief analyst at Commerzbank explained, “Slightly longer term, we continue to believe that the market has topped at 1.70”.
GBP/USD Levels
Spot is presently trading at 1.6812, and next resistance can be seen at 1.6827 (Daily High), 1.6840 (Daily Classic R3), 1.6861 (Weekly Classic R1), 1.6967 (Weekly Classic R2) and 1.6975 (Monthly High). Support below can be found at 1.6805 (Daily Classic R2), 1.6790 (Daily 20 SMA), 1.6777 (Weekly Classic PP), 1.6770 (Daily Classic R1) and 1.6770 (Hourly 20 EMA).
GBP/USD sits at the top of its run from the depths of 1.67 handle and onto 1.68 and this has broken the descending trend-line’s resistance from the 1.6998 levels posted at the start of May. The action today has been around the Central banks in the main and strategists at RBS noted that the Bank of England MPC left monetary policy settings unaltered in June, as was universally expected (0.5% Bank Rate, £375bn stock of QE gilts). “There was no statement (also as expected) and the Minutes will be published at 09:30 on Wednesday 18 June, where we expect unanimous policy votes. The RBS forecast is for the first 25bp Bank Rate hike in August 2015, with Bank Rate reaching 1.0% by the end of 2015 and 2.0% at the end of 2016”.
GBP/USD, how high can it go?
Well, some analysts are not convinced that there is much more room for Sterling on the upside. Karen Jones, chief analyst at Commerzbank explained, “Slightly longer term, we continue to believe that the market has topped at 1.70”.
GBP/USD Levels
Spot is presently trading at 1.6812, and next resistance can be seen at 1.6827 (Daily High), 1.6840 (Daily Classic R3), 1.6861 (Weekly Classic R1), 1.6967 (Weekly Classic R2) and 1.6975 (Monthly High). Support below can be found at 1.6805 (Daily Classic R2), 1.6790 (Daily 20 SMA), 1.6777 (Weekly Classic PP), 1.6770 (Daily Classic R1) and 1.6770 (Hourly 20 EMA).