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14 Feb 2014
GBP/USD resilient near 1.6740
FXStreet (Edinburgh) - The sterling remains in the upper end of the weekly range so far, with the GBP/USD holding onto the 1.6740 level.
GBP/USD in multi-month highs
The solid recovery in the UK economy above all plus market expectations of a rate hike sooner than expected by the BoE – many analysts talking about year end - have bolstered the impressive GBP rally since July 2013 lows near 1.4800 the figure. “Our more bullish pound view (end-2014 EUR/GBP 0.7600 and GBP/USD 1.6840) is based on rate increases beginning in Q1 2015. We maintain that view… but accept that there are likely to be occasions when the financial markets may speculate on the potential for the BOE to move on the first occasion in Q4 this year”, commented analysts at BTMU.
GBP/USD levels to watch
The pair is now advancing 0.47% at 1.6732 facing the next resistance at 1.6753 (2014 high Feb.14) followed by 1.6745 (high April 2011). On the flip side, a breakdown of 1.6425 (low Feb.12) would expose 1.6392 (low Feb.11).
GBP/USD in multi-month highs
The solid recovery in the UK economy above all plus market expectations of a rate hike sooner than expected by the BoE – many analysts talking about year end - have bolstered the impressive GBP rally since July 2013 lows near 1.4800 the figure. “Our more bullish pound view (end-2014 EUR/GBP 0.7600 and GBP/USD 1.6840) is based on rate increases beginning in Q1 2015. We maintain that view… but accept that there are likely to be occasions when the financial markets may speculate on the potential for the BOE to move on the first occasion in Q4 this year”, commented analysts at BTMU.
GBP/USD levels to watch
The pair is now advancing 0.47% at 1.6732 facing the next resistance at 1.6753 (2014 high Feb.14) followed by 1.6745 (high April 2011). On the flip side, a breakdown of 1.6425 (low Feb.12) would expose 1.6392 (low Feb.11).