24 Jul 2014
GBP/USD followed the euro, but rebounded
FXStreet (Moscow) - GBP/USD opened the day at 1.7039, slid to 1.7021, but recovered to 1.7045 area soon.
Desperate pound bulls
The pair was slow to realize there was nothing aggressive in the MPC minutes on Wednesday. The investors scrutinized every word, and, not finding anything to strengthen on, sent the pair to 1.7120 area. The key reason the BOE is still neutral lies in the labor market, and the minutes confirmed that by the phrase ‘the size of labor slack remains uncertain with weakness in wages in face of strong employment becoming more striking’. It may mean that unless we see wage rise, there will be no rate hike this year. Scheduled for today Retail Sales data will hardly offset the disappointment – only much stronger than expected data may push the pair up with initial target at 1.7085 resistance.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7055, with support below at 1.7013, 1.6983 and 1.6941 with resistance above at 1.7085, 1.7127, and 1.7157. Hourly Moving Averages are bearish, with the 200SMA at 1.7093, and the daily 20EMA flat at 1.7077. Hourly RSI is bullish at 40.
Desperate pound bulls
The pair was slow to realize there was nothing aggressive in the MPC minutes on Wednesday. The investors scrutinized every word, and, not finding anything to strengthen on, sent the pair to 1.7120 area. The key reason the BOE is still neutral lies in the labor market, and the minutes confirmed that by the phrase ‘the size of labor slack remains uncertain with weakness in wages in face of strong employment becoming more striking’. It may mean that unless we see wage rise, there will be no rate hike this year. Scheduled for today Retail Sales data will hardly offset the disappointment – only much stronger than expected data may push the pair up with initial target at 1.7085 resistance.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.7055, with support below at 1.7013, 1.6983 and 1.6941 with resistance above at 1.7085, 1.7127, and 1.7157. Hourly Moving Averages are bearish, with the 200SMA at 1.7093, and the daily 20EMA flat at 1.7077. Hourly RSI is bullish at 40.