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5 Mar 2014
GBP/USD advances through 1.6700
FXStreet (Edinburgh) - The sterling is accelerating its upside on Wednesday, pushing the GBP/USD beyond the 1.6700 key barrier.
GBP/USD bolstered by PMI
The more relevant services PMI in the UK economy exceeded expectations in February, coming in at 58.2 vs. 58.0 expected albeit a tad lower than January’s 58.3. in light of the recent data, Analyst James Knightley at ING Bank NV suggested, “The survey compiler suggests that this is consistent with the economy growing about 0.7%QoQ in 1Q14… We still suggest that the risks to our February 2015 estimate for the first BoE rate cut are skewed towards an earlier move rather than a later move”. Ahead in the week, the next big event for the pound will be Thursday’s BoE MPC meeting ahead of US Payrolls on Friday.
GBP/USD levels to consider
As of writing the pair is advancing 0.21% at 1.6703 facing the next resistance at 1.6716 (high Mar.4) followed by 1.6769 (high Feb.28) and finally 168 (psychological level). On the flip side, a breakdown of 1.6656 (low Mar.5) would open the door to 1.6640 (low Mar.4) and then 1.6617 (low Feb.27).
GBP/USD bolstered by PMI
The more relevant services PMI in the UK economy exceeded expectations in February, coming in at 58.2 vs. 58.0 expected albeit a tad lower than January’s 58.3. in light of the recent data, Analyst James Knightley at ING Bank NV suggested, “The survey compiler suggests that this is consistent with the economy growing about 0.7%QoQ in 1Q14… We still suggest that the risks to our February 2015 estimate for the first BoE rate cut are skewed towards an earlier move rather than a later move”. Ahead in the week, the next big event for the pound will be Thursday’s BoE MPC meeting ahead of US Payrolls on Friday.
GBP/USD levels to consider
As of writing the pair is advancing 0.21% at 1.6703 facing the next resistance at 1.6716 (high Mar.4) followed by 1.6769 (high Feb.28) and finally 168 (psychological level). On the flip side, a breakdown of 1.6656 (low Mar.5) would open the door to 1.6640 (low Mar.4) and then 1.6617 (low Feb.27).