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22 Apr 2014
GBP/USD to test 1.70 handle?
FXStreet (Guatemala) - Currently, GBP/USD is trading at 1.6789, up 0.01% on the day, having posted a daily high at 1.6794 and low at 1.6791.
The surge in 3-month employment gains in February quickly saw the market re-price expectations for a less dovish BoE and GBP/USD test its 2014 highs last week. Strategists at RBS note suggested that the Fed's dovish message is becoming begrudgingly accepted while the BoE's dovish outlook is more under challenge – “That divergence may put the bias toward a test of 1.70, though we think the air is increasingly thinning for GBP, particularly above 1.70. March retail sales this week is the key data release”.
Daily RSI sits at 63.89, in neutral territory
Looking to momentum indicators, the hourly 200 SMA is currently at 1.6794, up from the last close at 1.6769 and climbing. Over the past 20 days, the exponential average closing price is 1.6701, and trending higher.
GBP/USD Levels
Current price is 1.6792, with resistance ahead at 1.6794 (Daily High), 1.6797 (Monthly High), 1.6797 (Weekly High), 1.6797 (Annual High) and 1.6797 (3 Year High). Next support to the downside can be found at 1.6792 (Daily Open), 1.6791 (Daily Low), 1.6790 (Daily Classic PP), 1.6787 (Hourly 100 SMA) and 1.6782 (Yesterday's Low). Looking at price patterns, we can see a Doji 1-hour candlestick formation.
The surge in 3-month employment gains in February quickly saw the market re-price expectations for a less dovish BoE and GBP/USD test its 2014 highs last week. Strategists at RBS note suggested that the Fed's dovish message is becoming begrudgingly accepted while the BoE's dovish outlook is more under challenge – “That divergence may put the bias toward a test of 1.70, though we think the air is increasingly thinning for GBP, particularly above 1.70. March retail sales this week is the key data release”.
Daily RSI sits at 63.89, in neutral territory
Looking to momentum indicators, the hourly 200 SMA is currently at 1.6794, up from the last close at 1.6769 and climbing. Over the past 20 days, the exponential average closing price is 1.6701, and trending higher.
GBP/USD Levels
Current price is 1.6792, with resistance ahead at 1.6794 (Daily High), 1.6797 (Monthly High), 1.6797 (Weekly High), 1.6797 (Annual High) and 1.6797 (3 Year High). Next support to the downside can be found at 1.6792 (Daily Open), 1.6791 (Daily Low), 1.6790 (Daily Classic PP), 1.6787 (Hourly 100 SMA) and 1.6782 (Yesterday's Low). Looking at price patterns, we can see a Doji 1-hour candlestick formation.