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2 Jun 2014
GBP/USD consolidating around 1.6750
FXStreet (Edinburgh) - The sterling is now attempting a consolidation pattern, taking the GBP/USD to navigate around the mid-1.6700s.
GBP/USD capped by 1.6760
Less auspicious UK docket weighed on the pair during the European morning, with Mortgage Approvals, M4 Money Supply and Consumer Credit all missing estimates while the manufacturing PMI came in a tad lower in May. In the opinion of Paul Robson, Senior FX Strategist at RBS, “While we remain below 1.6880 on the weekly chart, the risk remains price rallies failing by 1.6775/1.6700 and a test down to 1.65/1.66 support. Bigger picture, price is not yet testing the first retracement and for this reason moves lower should find support. Sentiment is likely to turn more positive above 1.6880”.
GBP/USD levels to watch
The pair is now losing 0.02% at 1.6751 and a breach of 1.6724 (daily cloud top) would target 1.6693 (low May 29) en route to 1.6668 (100-d MA). On the upside, the initial hurdle aligns at 1.6778 (high May 30) ahead of 1.6803 (10-d MA) and then 1.6816 (high May 28).
GBP/USD capped by 1.6760
Less auspicious UK docket weighed on the pair during the European morning, with Mortgage Approvals, M4 Money Supply and Consumer Credit all missing estimates while the manufacturing PMI came in a tad lower in May. In the opinion of Paul Robson, Senior FX Strategist at RBS, “While we remain below 1.6880 on the weekly chart, the risk remains price rallies failing by 1.6775/1.6700 and a test down to 1.65/1.66 support. Bigger picture, price is not yet testing the first retracement and for this reason moves lower should find support. Sentiment is likely to turn more positive above 1.6880”.
GBP/USD levels to watch
The pair is now losing 0.02% at 1.6751 and a breach of 1.6724 (daily cloud top) would target 1.6693 (low May 29) en route to 1.6668 (100-d MA). On the upside, the initial hurdle aligns at 1.6778 (high May 30) ahead of 1.6803 (10-d MA) and then 1.6816 (high May 28).