GBP/USD Flirting with 1.4650, Highest Since Jan 6th Once Above...
GBP/USD Flirting with 1.4650, Highest Since Jan 6th Once Above...
GBP/USD
has been on a steady rise in Asia hours, with bulls currently
threatening with the prospects of a break through 1.4650, a key level of
resistance, which if broken, would represent the highest level for the
pair since January 6th this year.
FOMC, Brexit polls driving GBP/USD higher
The
dumping of US Dollar across the board has only accelerated following
another dovish outcome by the FOMC earlier this week, which if coupled
with an increased perception of the 'remain' campaign taking an
advantageous lead in the Brexit polls (especially after US President
Obama's comments on UK/US trade deal prospects if UK were to leave the
EU), has resulted in a consistent addition of new buy-side business in
the Sterling, as reflected by the recent increase of open interest in
the 6G contract late this month, as the rise picked up momentum.
What's in store for UK, US economies today?
In
terms of fundamentals, today's calendar in the UK does not present
market moving events of note, with net lending to individuals, M4 money
supply and mortgage approvals, due all at 8.30GMT. Meanwhile, US
economic indicators should inject some volatility, with core PCE price
index, employment cost, personal spending, Chicago PMI and UoM consumer
sentiment, the line-up for this Friday, to be published between 12.30
and 2GMT.
GBP/USD technicals
Mohammed Isah,
Analyst at FXTech strategy, shares his view on GBP/USD, noting that
further bullishness is envisaged. According too Isah, "resistance stands
at the 1.4650 levels with a turn above here allowing more strength to
build up towards the 1.4700 level ahead of 1.4750 level followed by the
1.4800 level." On the whole, Isah sees 1.4550 level as immediate
support, adding that "a break will turn attention to the 1.4500 level."
