GBP/USD marking 5 week highs

6 February 2015, 01:32
Andrius Kulvinskas
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Valeria Bednarik, chief analyst at FXStreet explained that GBP/USD trades near a fresh 5-week high of 1.5342 early in the Asian session.

Key Quotes:

"Boosted by broad dollar weakness and stronger than expected house prices in January in the UK according to the Halifax measure, which rose 2.0% m/m."

"December data was also revised up to +1.1% m/m from 0.9% m/m. The January y/y figure came in at +8.5%, up from 7.8% y/y. The Bank of England had its monthly economic policy meeting, but maintain rates and the APP unchanged, failing to affect the market." 

"When it comes to technical analysis, the 1 hour chart shows that the indicators maintain a strong upward slope, despite being in extreme overbought territory, while the 20 SMA rose sharply, now acting as a dynamic support around 1.5250." 

"In the 4 hours chart the indicators are beginning to look exhausted in overbought levels, although price broke above its 200 EMA for the first time in 8 months. The EMA is now at 1.5255, and as long as the price holds above it, the upside is favored, eyeing the 1.5500 price zone."
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