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10 Feb 2014
GBP/USD treading on the 1.64 handle
FXStreet (Guatemala) - GBP/USD is holding onto the 1.64 handle on a market that is pondering over the stance of Yellen this week.
Strategist at RBS noted that this week sees new Fed Chair Yellen update markets on the outlook for monetary policy during her Semi Annual testimony. “We expect her to embed the Fed's dovish policy stance. This should mean that 1.6260/70 continues to be a tough nut to crack to the downside for GBP/USD despite the expected change in BoE guidance”. Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD held the 1.6259/29 support 3 times last week (September high and the 23.6% retracement of the move up from July 2013). However, she explained, “From a longer term perspective we believe that the market has recently topped. The market has recently failed at tough resistance - the 1.6745 May 2011 peak, the 200 month ma at 1.6635 and the inter-year pivot line at 1.6657.” .”
GBP/USD Levels
The 20 DMA is 1.6444, the 50 DMA is 1.6418 and the 200 DMA is 1.5840. RSI (14) reads 58.12. Supports are ascending from 1.6272, 1.6295, 1.6325, 1.6348. Spot is 1.6409 while resistances are 1.6427, 1.6449, 1.6460 and 1.6471.
Strategist at RBS noted that this week sees new Fed Chair Yellen update markets on the outlook for monetary policy during her Semi Annual testimony. “We expect her to embed the Fed's dovish policy stance. This should mean that 1.6260/70 continues to be a tough nut to crack to the downside for GBP/USD despite the expected change in BoE guidance”. Karen Jones, Head of Technical Analysis at Commerzbank notes that GBP/USD held the 1.6259/29 support 3 times last week (September high and the 23.6% retracement of the move up from July 2013). However, she explained, “From a longer term perspective we believe that the market has recently topped. The market has recently failed at tough resistance - the 1.6745 May 2011 peak, the 200 month ma at 1.6635 and the inter-year pivot line at 1.6657.” .”
GBP/USD Levels
The 20 DMA is 1.6444, the 50 DMA is 1.6418 and the 200 DMA is 1.5840. RSI (14) reads 58.12. Supports are ascending from 1.6272, 1.6295, 1.6325, 1.6348. Spot is 1.6409 while resistances are 1.6427, 1.6449, 1.6460 and 1.6471.