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11 Mar 2014
GBP/USD challenges 1.6600
FXStreet (Edinburgh) - The selling pressure now intensifies around the pound, prompting the GBP/USD to test the critical support at 1.6600 the figure on Tuesday.
GBP/USD decline accelerates
The pair continues to give ground as risk aversion seems to dominate the sentiment at the beginning of the week. Mixed data from the UK industrial sector did not help spot either, which remains submerged in the red territory. According to Analyst James Knightley at ING Bank NV, “The annual rate of industrial production growth is now up to 2.9%, which is the strongest reading for 3 years and with the manufacturing purchasing managers’ index remaining at robust levels the prospects for the sector remain good. We remain comfortable with our house view that the first rate hike is likely to be in early 2015 with comments from BoE officials this morning not giving us any reason to alter our view”.
GBP/USD levels to watch
As of writing the pair is down 0.21% at 1.6608 facing the next support at 1.6586 (30-d MA) followed by 1.6583 (low Feb.24) and finally 1.6500 (psychological level). On the flip side, a break above the psychological mark at 1.6700 would aim for 1.6745 (high Mar.10) and then 1.6785 (high Mar.7).
GBP/USD decline accelerates
The pair continues to give ground as risk aversion seems to dominate the sentiment at the beginning of the week. Mixed data from the UK industrial sector did not help spot either, which remains submerged in the red territory. According to Analyst James Knightley at ING Bank NV, “The annual rate of industrial production growth is now up to 2.9%, which is the strongest reading for 3 years and with the manufacturing purchasing managers’ index remaining at robust levels the prospects for the sector remain good. We remain comfortable with our house view that the first rate hike is likely to be in early 2015 with comments from BoE officials this morning not giving us any reason to alter our view”.
GBP/USD levels to watch
As of writing the pair is down 0.21% at 1.6608 facing the next support at 1.6586 (30-d MA) followed by 1.6583 (low Feb.24) and finally 1.6500 (psychological level). On the flip side, a break above the psychological mark at 1.6700 would aim for 1.6745 (high Mar.10) and then 1.6785 (high Mar.7).