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19 May 2014
GBP/USD tailing off and pressing 1.6820
FXStreet (Guatemala) - GBP/USD is meeting offers in 1.6840 with non committed bulls backing away at the start of the week. With there being little from the calendar today, beyond the housing market chatter, we will be entertaining a busier time of things starting tomorrow. The UK CPI (tomorrow) and BoE minutes (Wednesday) are coming up.
UK CPI and BoE minutes
RBS strategist, Ross Walker, is a little ahead of the consensus on CPI, “With disinflation the focus globally, currencies have become very sensitive to even small misses on inflation. The May MPC Minutes are expected to reveal unanimous policy votes for unchanged policy and only marginal erosion of the fairly high degree of consensus within the Committee. The main interest will centre on any signs that the fairly high degree of consensus on the Committee since the launch of explicit forward guidance is beginning to diminish”. The RBS analysts said they expect GBP to trade “softly” this week.
GBP/USD Levels
Spot is presently trading at 1.6819, and next resistance can be seen at 1.6822 (Hourly 20 EMA), 1.6826 (Daily 20 SMA), 1.6840 (Daily Classic R1), 1.6843 (Yesterday's High) and 1.6847 (Daily High). Next support to the downside can be found at 1.6815 (Weekly Classic PP), 1.6815 (Daily Open), 1.6812 (Daily Classic PP), 1.6805 (Daily Low) and 1.6805 (Hourly 100 SMA).
GBP/USD Levels
Regarding candlestick formations, we can see Hammer formation on the 1-hour.
UK CPI and BoE minutes
RBS strategist, Ross Walker, is a little ahead of the consensus on CPI, “With disinflation the focus globally, currencies have become very sensitive to even small misses on inflation. The May MPC Minutes are expected to reveal unanimous policy votes for unchanged policy and only marginal erosion of the fairly high degree of consensus within the Committee. The main interest will centre on any signs that the fairly high degree of consensus on the Committee since the launch of explicit forward guidance is beginning to diminish”. The RBS analysts said they expect GBP to trade “softly” this week.
GBP/USD Levels
Spot is presently trading at 1.6819, and next resistance can be seen at 1.6822 (Hourly 20 EMA), 1.6826 (Daily 20 SMA), 1.6840 (Daily Classic R1), 1.6843 (Yesterday's High) and 1.6847 (Daily High). Next support to the downside can be found at 1.6815 (Weekly Classic PP), 1.6815 (Daily Open), 1.6812 (Daily Classic PP), 1.6805 (Daily Low) and 1.6805 (Hourly 100 SMA).
GBP/USD Levels
Regarding candlestick formations, we can see Hammer formation on the 1-hour.