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13 Sep 2013
GBP/USD advancing to 1.5870
FXstreet.com (London) - GBP/USD is on the bid and has continued to advance in a sterling friendly environment.
GBP/USD got into deeper positive territory yesterday when the 7.7% result in the Unemployment rate beat expectations marginally offering more good news for the economy. Earlier, construction output was slightly stronger than consensus expectations, showing a 2.2% M/M rise in July. Despite a downward revision to June data, Q2 as a whole was revised higher, although not enough to have any real impact on GDP. Meanwhile, we have seen a number of data releases from the US, in the main negative. Michigan Consumer Sentiment came in at 76.8 against 82.0 expectations.
GBP/USD meeting resistance
The 20 DMA is 1.5608, the 50 DMA is 1.5397 and the 200 DMA is 1.5490. RSI (14) reads 77.52. Supports are ascending from 1.5556, 1.5603, 1.5625, 1.5681, 1.5730, 1.5753, 1.5781 and Spot is 1.5871 meeting resistance. Karen Jones, Chief Analyst at Commerzbank said that while above the 1.5557 2 month up channel, they remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.
GBP/USD got into deeper positive territory yesterday when the 7.7% result in the Unemployment rate beat expectations marginally offering more good news for the economy. Earlier, construction output was slightly stronger than consensus expectations, showing a 2.2% M/M rise in July. Despite a downward revision to June data, Q2 as a whole was revised higher, although not enough to have any real impact on GDP. Meanwhile, we have seen a number of data releases from the US, in the main negative. Michigan Consumer Sentiment came in at 76.8 against 82.0 expectations.
GBP/USD meeting resistance
The 20 DMA is 1.5608, the 50 DMA is 1.5397 and the 200 DMA is 1.5490. RSI (14) reads 77.52. Supports are ascending from 1.5556, 1.5603, 1.5625, 1.5681, 1.5730, 1.5753, 1.5781 and Spot is 1.5871 meeting resistance. Karen Jones, Chief Analyst at Commerzbank said that while above the 1.5557 2 month up channel, they remain unable to rule out further upside probes and only a close below here will negate current upside pressure and allow for a slide back to the 1.5430/24 recent lows and then 1.5104 the August low.