25 Mar 2014
GBP/USD lacking momentum but tone is bid
FXStreet (Guatemala) - GBP/USD, back onto the 1.65 handle, has been probing the upside on the day while offers are resulting in a buy on dips so far.
GBP/USD highs are in the 1.6550’s but bids lack real follow through. Meanwhile, Jacqui Douglas, Senior Global Strategist , Rates and FX Research at TD Securities noted that the UK CPI was in line with consensus at 1.7% Y/Y for March. “There was a bit of pick up on the core side, with core CPI eking higher to 1.7% as well (mkt 1.6%) after two months of unusually soft prints, but more downward pressure from food and energy prices. This is the lowest level of UK inflation since Oct 2009, but it seems that markets may have been positioned for slight downside risks (given the trend in Europe has generally been toward lower inflation) as GBP popped a bit higher afterwards”.
GBP/USD Levels
The 20 DMA is 1.6634, the 50 DMA is 1.6561 and the 200 DMA is 1.6037. RSI (14) reads 61.41. Supports are ascending from 1.6399, 1.6425, 1.6447 and 1.6460. Spot is 1.6529, 1.6536, 1.6550, 1.6570 and 1.6587.
GBP/USD highs are in the 1.6550’s but bids lack real follow through. Meanwhile, Jacqui Douglas, Senior Global Strategist , Rates and FX Research at TD Securities noted that the UK CPI was in line with consensus at 1.7% Y/Y for March. “There was a bit of pick up on the core side, with core CPI eking higher to 1.7% as well (mkt 1.6%) after two months of unusually soft prints, but more downward pressure from food and energy prices. This is the lowest level of UK inflation since Oct 2009, but it seems that markets may have been positioned for slight downside risks (given the trend in Europe has generally been toward lower inflation) as GBP popped a bit higher afterwards”.
GBP/USD Levels
The 20 DMA is 1.6634, the 50 DMA is 1.6561 and the 200 DMA is 1.6037. RSI (14) reads 61.41. Supports are ascending from 1.6399, 1.6425, 1.6447 and 1.6460. Spot is 1.6529, 1.6536, 1.6550, 1.6570 and 1.6587.