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4 Jun 2014
GBP/USD settling down and resumes sideways
FXStreet (Guatemala) - GBP/USD is trading at 1.6747, down -0.01% on the day, having posted a daily high at 1.6770 and low at 1.6699.
The Markit Services PMI spike has topped out and the pair remains below the mid way point on the 1.67 handle again and resuming its sideways price action.
In respect of the BoE this week, strategist at Rabobank explained that recent comments from MPC member Martin Weale suggesting that the BoE should start to raise interest rates sooner rather than later (but not yet), underpin the risk that in the foreseeable future the voting pattern of the MPC is likely to change. “The minutes of both the April and May meetings have already hinted that a divergence in views is growing. It is natural that as the economy recovers the better news will start to draw out the hawks. There has been no divergence in the MPC votes pertaining to QE since June 2013 and none on interest rate policy since July 2011. While we do not expect the consensus to vote for a rate hike until Q2 2015, we suspect that one or two of the nine man committee may be voting in favour of a rate hike by the autumn. This will underpin the likelihood that the BoE is set to be the second developed world central bank to hike rates following the RBNZ which has already hiked rates twice during the current cycle. The minutes of the June meeting will be published on Wednesday 18”.
GBP/USD Levels
With spot trading at 1.6747, we can see next resistance ahead at 1.6749 (Daily Open), 1.6754 (Daily Classic PP), 1.6755 (Weekly High), 1.6770 (Daily High) and 1.6774 (Hourly 200 SMA). Support below can be found at 1.6741 (Hourly 100 SMA), 1.6741 (Hourly 20 EMA), 1.6731 (Yesterday's Low), 1.6726 (Daily Classic S1) and 1.6710 (Monthly Low).
The Markit Services PMI spike has topped out and the pair remains below the mid way point on the 1.67 handle again and resuming its sideways price action.
In respect of the BoE this week, strategist at Rabobank explained that recent comments from MPC member Martin Weale suggesting that the BoE should start to raise interest rates sooner rather than later (but not yet), underpin the risk that in the foreseeable future the voting pattern of the MPC is likely to change. “The minutes of both the April and May meetings have already hinted that a divergence in views is growing. It is natural that as the economy recovers the better news will start to draw out the hawks. There has been no divergence in the MPC votes pertaining to QE since June 2013 and none on interest rate policy since July 2011. While we do not expect the consensus to vote for a rate hike until Q2 2015, we suspect that one or two of the nine man committee may be voting in favour of a rate hike by the autumn. This will underpin the likelihood that the BoE is set to be the second developed world central bank to hike rates following the RBNZ which has already hiked rates twice during the current cycle. The minutes of the June meeting will be published on Wednesday 18”.
GBP/USD Levels
With spot trading at 1.6747, we can see next resistance ahead at 1.6749 (Daily Open), 1.6754 (Daily Classic PP), 1.6755 (Weekly High), 1.6770 (Daily High) and 1.6774 (Hourly 200 SMA). Support below can be found at 1.6741 (Hourly 100 SMA), 1.6741 (Hourly 20 EMA), 1.6731 (Yesterday's Low), 1.6726 (Daily Classic S1) and 1.6710 (Monthly Low).