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9 Jun 2014
GBP/USD testing 1.6800
FXStreet (Edinburgh) - The sterling is trading almost unchanged at the beginning of the week, with the GBP/USD now easing from earlier tops around 1.6830.
GBP/USD softer on improved risk aversion
The pound is following its European counterpart on Monday, surrendering initial gains and putting the critical 1.6800 support to the test. Quite interesting week ahead for the GBP, as industrial/manufacturing production is due tomorrow ahead of the NIESR GDP estimate and the critical labour market figures on Wednesday (u-rate at 6.7% exp.). “The dominant technical consideration for sterling is the downtrend line down off the May highs caught sterling's pre-weekend high near $1.6845, which also corresponds to a retracement objective. A break of this are would be encouraging but additional resistance is seen in the $1.6880-$1.6925 band. A pullback into the $1.6755-70 range may be a new opportunity to participate from the long side”, observed analysts at BBH.
GBP/USD levels to watch
At the moment the pair is up 0.01% at 1.6801 with the next resistance at 1.6833 (high Jun.9) followed by 1.6845 (high Jun.6) and then 1.6883 (high May 27). On the downside, a break below 1.6781 (low Jun.6) would target 1.6723 (low Jun.5) en route to 1.6699 (low Jun.4).
GBP/USD softer on improved risk aversion
The pound is following its European counterpart on Monday, surrendering initial gains and putting the critical 1.6800 support to the test. Quite interesting week ahead for the GBP, as industrial/manufacturing production is due tomorrow ahead of the NIESR GDP estimate and the critical labour market figures on Wednesday (u-rate at 6.7% exp.). “The dominant technical consideration for sterling is the downtrend line down off the May highs caught sterling's pre-weekend high near $1.6845, which also corresponds to a retracement objective. A break of this are would be encouraging but additional resistance is seen in the $1.6880-$1.6925 band. A pullback into the $1.6755-70 range may be a new opportunity to participate from the long side”, observed analysts at BBH.
GBP/USD levels to watch
At the moment the pair is up 0.01% at 1.6801 with the next resistance at 1.6833 (high Jun.9) followed by 1.6845 (high Jun.6) and then 1.6883 (high May 27). On the downside, a break below 1.6781 (low Jun.6) would target 1.6723 (low Jun.5) en route to 1.6699 (low Jun.4).