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22 May 2014
GBP/USD under scrutiny
FXStreet (Guatemala) - GBP/USD> is trading at 1.6856, down -0.25% on the day, having posted a daily high at 1.6920 and low at 1.6851.
GBP is lower on the release of Q1 GDP, which was in line with the first estimate at 3.1%y/y; Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that, however, the details suggested softer than expected exports (likely partially on the back of a strong GBP) that were offset by stronger than expected private consumption and business investment. GBP is trading at the mid-point of its recent 1.6732 to 1.6996 range. We expect a near-term test of its recent highs." RBS strategists explained their concerns, “We continue to be fearful of the UK's triple's imbalances -1) a growing and persistent current account deficit, 2) an increasingly indebted household sector and 3) a stubbornly large fiscal deficit. Overnight data that reveal a worse than expected budget position and a recovery that remains heavily dependent on consumption rather than exports/investment play to the idea that the air above GBP may be thinner than many may think it is”.
GBP/USD Levels
Spot is presently trading at 1.6857, and next resistance can be seen at 1.6875 (Hourly 20 EMA), 1.6884 (Daily Classic PP), 1.6899 (Weekly High), 1.6899 (Weekly Classic R1) and 1.6900 (Daily Open). Next support to the downside can be found at 1.6851 (Daily Low), 1.6846 (Hourly 100 SMA), 1.6846 (Daily Classic S1), 1.6833 (Daily 20 SMA) and 1.6833 (Hourly 200 SMA).
GBP is lower on the release of Q1 GDP, which was in line with the first estimate at 3.1%y/y; Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that, however, the details suggested softer than expected exports (likely partially on the back of a strong GBP) that were offset by stronger than expected private consumption and business investment. GBP is trading at the mid-point of its recent 1.6732 to 1.6996 range. We expect a near-term test of its recent highs." RBS strategists explained their concerns, “We continue to be fearful of the UK's triple's imbalances -1) a growing and persistent current account deficit, 2) an increasingly indebted household sector and 3) a stubbornly large fiscal deficit. Overnight data that reveal a worse than expected budget position and a recovery that remains heavily dependent on consumption rather than exports/investment play to the idea that the air above GBP may be thinner than many may think it is”.
GBP/USD Levels
Spot is presently trading at 1.6857, and next resistance can be seen at 1.6875 (Hourly 20 EMA), 1.6884 (Daily Classic PP), 1.6899 (Weekly High), 1.6899 (Weekly Classic R1) and 1.6900 (Daily Open). Next support to the downside can be found at 1.6851 (Daily Low), 1.6846 (Hourly 100 SMA), 1.6846 (Daily Classic S1), 1.6833 (Daily 20 SMA) and 1.6833 (Hourly 200 SMA).