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17 Feb 2014
GBP/USD soft on mixed signals
FXStreet (Guatemala) - GBP/USD has been performing well while markets are pricing in rate hikes from the BoE in 2015. However the pair has dropped a big figure with mixed signals coming in from BoE officials. BOE's Miles said a rate hike is a blunt instrument for house market
GBP/USD has risen onto the 1.68 handle scoring a high of 1.6825. Since however, supply has taken the pair back into the territory of the 1.6710’s. Markets are pricing in he curve, although we are some way off indicated by the BoE Governor Carney in an interview yesterday. He reiterated, as Lee Hardman, currency analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained, “that interest rate increases will be “limited and gradual” with some very big persistent forces likely to conspire collectively to keep the level of interest rates down”. Hardman further explained and said, “However with other major central banks not yet even seriously considering rate hikes, even the prospect of very gradual and modest BoE rate hikes ahead is likely to continue boosting the relative attractiveness of the pound further”.
GBP/USD Levels
The 20 DMA is 1.6488, the 50 DMA is 1.6439 and the 200 DMA is 1.5867. RSI (14) reads 33. Supports are ascending from 1.6667, 1.6692, and 1.6710. Spot is 1.6712 while resistances are 1.6825, 1.6845, 1.6879, 1.6902 and 1.6975.
GBP/USD has risen onto the 1.68 handle scoring a high of 1.6825. Since however, supply has taken the pair back into the territory of the 1.6710’s. Markets are pricing in he curve, although we are some way off indicated by the BoE Governor Carney in an interview yesterday. He reiterated, as Lee Hardman, currency analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained, “that interest rate increases will be “limited and gradual” with some very big persistent forces likely to conspire collectively to keep the level of interest rates down”. Hardman further explained and said, “However with other major central banks not yet even seriously considering rate hikes, even the prospect of very gradual and modest BoE rate hikes ahead is likely to continue boosting the relative attractiveness of the pound further”.
GBP/USD Levels
The 20 DMA is 1.6488, the 50 DMA is 1.6439 and the 200 DMA is 1.5867. RSI (14) reads 33. Supports are ascending from 1.6667, 1.6692, and 1.6710. Spot is 1.6712 while resistances are 1.6825, 1.6845, 1.6879, 1.6902 and 1.6975.