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7 Jan 2014
GBP/USD is still below 1.64
FXstreet.com (Moscow) - GBP/USD is still unable to position itself above 1.64 barrier, again drifting lower from the open level at 1.6404 to 1.6387 at the moment.
Second-tier data from UK leaves the pound without catalysts
The series of significant UK data disappointments made the investors reduce the long positions on pound. Nevertheless, we need to stress that the current PMI levels even being lower than expected are still close to historical peaks. It means that the British economy is not cooling – we just see the natural correction after a long row of better than expected data. With that in mind, we still see good potential for GBP/USD rise in the nearest future. Though today there is a lack of economic catalysts, euro zone data may be enough to trigger the rebound from current support at pivot point 1.6391. The 1.6446 resistance level is hard to go through, though once broken, we will see the quick move to 1.6489.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6391, with support below at 1.6348 (S1), 1.6293 (S2) and 1.6250 (S3), with resistance above at 1.6446 (R1), 1.6489 (R2), and 1.6544 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 1.6466 and the daily 20EMA flat at 1.6402. Hourly RSI is neutral at 47.
Second-tier data from UK leaves the pound without catalysts
The series of significant UK data disappointments made the investors reduce the long positions on pound. Nevertheless, we need to stress that the current PMI levels even being lower than expected are still close to historical peaks. It means that the British economy is not cooling – we just see the natural correction after a long row of better than expected data. With that in mind, we still see good potential for GBP/USD rise in the nearest future. Though today there is a lack of economic catalysts, euro zone data may be enough to trigger the rebound from current support at pivot point 1.6391. The 1.6446 resistance level is hard to go through, though once broken, we will see the quick move to 1.6489.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6391, with support below at 1.6348 (S1), 1.6293 (S2) and 1.6250 (S3), with resistance above at 1.6446 (R1), 1.6489 (R2), and 1.6544 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 1.6466 and the daily 20EMA flat at 1.6402. Hourly RSI is neutral at 47.