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18 Sep 2013
GBP/USD still cruising around 1.59 zone, 9-month summits
FXstreet.com (Chicago) - GBP/USD stalled after the closing of the American trading session and continued printing higher lows on gentle climbing above the 1.59 zone, around 9-month peaks ahead of the FOMC results and the Fed’s possible bond-buying program tapering.
Market action expected
The Bank of England is due to release its minutes from the last interest rate decision meeting a couple of weeks ago. With inflation targets votes, heavy market action is expected in tomorrow’s session as the US and the world prepare for the FOMC economic projections along the Fed’s interest rate decision and MBS purchase program updates. To recall, equity markets closed with gains in Wall Street with the Dow up 0.23%, the Nasdaq up 0.75% and the S&P 500 up 0.42%. In the UK, the FTSE100 closed down 0.80% dragged by weak car maker results.
GBP/USD Technical Levels - Stillness
Price action reveals the continuation of an upward trendline despite a strong capping around the 1.60 area last week, sending the pair back to 1.59 zone. Finding grounds, bulls made themselves present and held on to bearish pressure. Offered at 1.5906, the pair navigates between supports aligned at 1.5876 (February 4th highs), 1.5843 (February 15th highs) ahead of 1.58 (February 16th highs) and resistances aligned at 1.59 (October 31st 2012 lows), 1.5936 (September 16th highs) followed by 1.5976 (December 30th 2012 lows). The FXstreet.com trend index reports the pair as neutral on one-hour timeframe analysis with a neutral EMA20.
Market action expected
The Bank of England is due to release its minutes from the last interest rate decision meeting a couple of weeks ago. With inflation targets votes, heavy market action is expected in tomorrow’s session as the US and the world prepare for the FOMC economic projections along the Fed’s interest rate decision and MBS purchase program updates. To recall, equity markets closed with gains in Wall Street with the Dow up 0.23%, the Nasdaq up 0.75% and the S&P 500 up 0.42%. In the UK, the FTSE100 closed down 0.80% dragged by weak car maker results.
GBP/USD Technical Levels - Stillness
Price action reveals the continuation of an upward trendline despite a strong capping around the 1.60 area last week, sending the pair back to 1.59 zone. Finding grounds, bulls made themselves present and held on to bearish pressure. Offered at 1.5906, the pair navigates between supports aligned at 1.5876 (February 4th highs), 1.5843 (February 15th highs) ahead of 1.58 (February 16th highs) and resistances aligned at 1.59 (October 31st 2012 lows), 1.5936 (September 16th highs) followed by 1.5976 (December 30th 2012 lows). The FXstreet.com trend index reports the pair as neutral on one-hour timeframe analysis with a neutral EMA20.