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19 Feb 2014
GBP/USD retakes 1.6700 and beyond
FXStreet (Edinburgh) - After dipping to the area of 1.6640 post-UK data, the GBP/USD managed to gather steam and recover the area above the 1.6700 handle.
GBP/USD shrugged-off poor data
It seems spot left behind the higher unemployment rate (7.2% in December vs. 7.1% previous) and is extending its rebound from weekly lows in sub-1.6640 levels in the wake of the data. Poor US results from the housing sector added to the risk sentiment, hurting the greenback and allowing the current recovery, ahead of the FOMC minutes. In light of the recent UK labour market data, Ross Walker, Senior UK Economist at RBS, commented, “The key point is not to get unduly preoccupied by a small rise in the unemployment rate on the latest monthly data (from 7.15% to 7.21%) but rather to note the trend decline from 7.8% a year ago”.
GBP/USD levels to watch
The pair is now advancing 0.22% at 1.6715 with the initial up barrier at 1.6734 (high Feb.19) followed by 1.6741 (high Feb.18) and then 1.6823 (2014 high Feb.17). On the downside, a break below 1.6655 (low Feb.18) would expose 1.6644 (low Feb.14).
GBP/USD shrugged-off poor data
It seems spot left behind the higher unemployment rate (7.2% in December vs. 7.1% previous) and is extending its rebound from weekly lows in sub-1.6640 levels in the wake of the data. Poor US results from the housing sector added to the risk sentiment, hurting the greenback and allowing the current recovery, ahead of the FOMC minutes. In light of the recent UK labour market data, Ross Walker, Senior UK Economist at RBS, commented, “The key point is not to get unduly preoccupied by a small rise in the unemployment rate on the latest monthly data (from 7.15% to 7.21%) but rather to note the trend decline from 7.8% a year ago”.
GBP/USD levels to watch
The pair is now advancing 0.22% at 1.6715 with the initial up barrier at 1.6734 (high Feb.19) followed by 1.6741 (high Feb.18) and then 1.6823 (2014 high Feb.17). On the downside, a break below 1.6655 (low Feb.18) would expose 1.6644 (low Feb.14).