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16 Dec 2013
GBP/USD rejected at critical level
FXstreet.com (London) - GBP/USD reached a critical level in 1.6350 and then came heavy supply which has left the pair within the boundaries of the descending resistance line.
Meanwhile, strategists at TD Securities noted that the FOMC is the highlight this week, and they expect the Fed to pass on tapering asset purchases at this meeting. “Much of the insights will come from the Summary of Economic Projections (SEP) and the subsequent Bernanke press conference. We expect dovish tones as the Fed continues to emphasise its forward guidance agenda, even when it is also expected to start setting the stage for a January tapering…Otherwise, this week there is a lot of data to digest such as October CPI and industrial production reports, along with the delayed September, October and November housing starts numbers providing direction. Our expectation is for the overall tone of these reports to underscore the emerging constructive tone in the flow of recent economic reports, which have consistently been pointing to upside growth momentum”.
GBP/USD Levels
The 20 DMA is 1.6292, the 50 DMA is 1.6152 and the 200 DMA is 1.5603. RSI (14) reads 48.31. Supports are ascending from 1.6223, 1.6241, 1.6255, 1.6263. Spot is currently 1.6303 while resistances are 1.6321, 1.6340, 1.6360 and 1.6475.
Meanwhile, strategists at TD Securities noted that the FOMC is the highlight this week, and they expect the Fed to pass on tapering asset purchases at this meeting. “Much of the insights will come from the Summary of Economic Projections (SEP) and the subsequent Bernanke press conference. We expect dovish tones as the Fed continues to emphasise its forward guidance agenda, even when it is also expected to start setting the stage for a January tapering…Otherwise, this week there is a lot of data to digest such as October CPI and industrial production reports, along with the delayed September, October and November housing starts numbers providing direction. Our expectation is for the overall tone of these reports to underscore the emerging constructive tone in the flow of recent economic reports, which have consistently been pointing to upside growth momentum”.
GBP/USD Levels
The 20 DMA is 1.6292, the 50 DMA is 1.6152 and the 200 DMA is 1.5603. RSI (14) reads 48.31. Supports are ascending from 1.6223, 1.6241, 1.6255, 1.6263. Spot is currently 1.6303 while resistances are 1.6321, 1.6340, 1.6360 and 1.6475.