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14 May 2014
GBP/USD found support at 1.6760
FXStreet (Edinburgh) - It seems the intraday decline in the pound found decent support in the 1.6760 area, with the GBP/USD now attempting to regain 1.6770/80.
GBP/USD weaker on QIR, UK data
The pair saw its downside renewed after the employment dropped less than expected in April (-25.1K vs. -30.0K exp.) although the jobless rate came in lower at 6.8% (vs. 6.9% previous) in the three months ended in March. The subsequent dovish tone (at least more dovish than expected) from the BoE’s Quarterly Inflation Report took a toll on the GBP, dragging spot to multi-day troughs. “The MPC seems to see the current level of the currency as fundamentally justified and would need to see persistent strength in order to feel a need to adjust their forecasts”, noted Rich Kelly and Jacqui Douglas, Strategists at TD Securities.
GBP/USD levels to watch
The pair is now down 0.28% at 1.6777 and a breakdown of 1.6762 (low Apr.23) would expose 1.6727 (23.6% of 1.5854-1.6997) and then 1.6721 (low Apr.16). On the flip side, the initial hurdle aligns at 1.6843 (21-d MA) followed by 1.6875 (high May 14) and finally 1.6883 (high May 13).
GBP/USD weaker on QIR, UK data
The pair saw its downside renewed after the employment dropped less than expected in April (-25.1K vs. -30.0K exp.) although the jobless rate came in lower at 6.8% (vs. 6.9% previous) in the three months ended in March. The subsequent dovish tone (at least more dovish than expected) from the BoE’s Quarterly Inflation Report took a toll on the GBP, dragging spot to multi-day troughs. “The MPC seems to see the current level of the currency as fundamentally justified and would need to see persistent strength in order to feel a need to adjust their forecasts”, noted Rich Kelly and Jacqui Douglas, Strategists at TD Securities.
GBP/USD levels to watch
The pair is now down 0.28% at 1.6777 and a breakdown of 1.6762 (low Apr.23) would expose 1.6727 (23.6% of 1.5854-1.6997) and then 1.6721 (low Apr.16). On the flip side, the initial hurdle aligns at 1.6843 (21-d MA) followed by 1.6875 (high May 14) and finally 1.6883 (high May 13).