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2 Apr 2014
GBP/USD falling below 1.6630
FXStreet (Edinburgh) - The sterling is accelerating the downside on Wednesday, now dragging the GBP/USD to the 1.6630/25 region.
GBP/USD lower on risk aversion
Increasing risk off sentiment is now pushing spot lower, giving away earlier gains and retesting the 1.6630/25 area. In the data front, house prices gauged by the Nationwide index rose below estimates 0.4% inter-month in February and 9.5% on a yearly basis. in the same tone, Construction PMI missed forecasts in March. Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has charted an inside day, this gives us few clues to resolve the dilemma of where to next? Currently we must allow for an extension to the 1.6822 February high”.
GBP/USD levels to watch
The pair is now advancing 0.02% at 1.6634 with the immediate resistance at 1.6684 (high Mar.31) followed by 1.6719 (high Mar.13) and then 1.6745 (high Mar.10). On the other hand, a breakdown of 1.6620 (daily cloud top) would aim for 1.6613 (low Mar.31) and finally 1.6599 (low Mar.28).
GBP/USD lower on risk aversion
Increasing risk off sentiment is now pushing spot lower, giving away earlier gains and retesting the 1.6630/25 area. In the data front, house prices gauged by the Nationwide index rose below estimates 0.4% inter-month in February and 9.5% on a yearly basis. in the same tone, Construction PMI missed forecasts in March. Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented the pair “has charted an inside day, this gives us few clues to resolve the dilemma of where to next? Currently we must allow for an extension to the 1.6822 February high”.
GBP/USD levels to watch
The pair is now advancing 0.02% at 1.6634 with the immediate resistance at 1.6684 (high Mar.31) followed by 1.6719 (high Mar.13) and then 1.6745 (high Mar.10). On the other hand, a breakdown of 1.6620 (daily cloud top) would aim for 1.6613 (low Mar.31) and finally 1.6599 (low Mar.28).