New wave of dollar sales allowed GBP/USD to note multi-year highs above 1.7000 today, on June 19, 2014. FOMC statement supported GBP/USD. Issued yesterday pigeon Fed statement provoked a new wave of interest in risky assets that gave wings to the British and helped him grow above 1.7000 psychological levels, where now the pair is consolidating. In addition, recent statements by the Bank of England MPC supported GBP, said the analysts of the Forex Broker Company RVD Markets.
With regard to statistics, in May the retail sales in Britain rose by 3.9% y / y vs. 4.3% y / y and 6.5% y / y in April. Currency analysts report that the Bank of England Minutes are not too pleased with the bulls on the pound, but the subsequent weakening of the dollar has pushed the pair to the 1.7000 area, followed by a strong barrier at 1.7040/45 area. Support is expected at 1.6900.
GBP/USD is disarray after the British indicators, trading at 0.7018, and not knowing what to do next. UK retail sales were difficult to analyze, as sales excluding fuel went above expectations (-0.5% vs. -0.6%), although the annual rate fell to 3.9% from 6.9% in April from 4.3% forecast. In addition, an indicator of inflation for food was at a minimum with March 2006, indicating a further weakening of the price pressure. Pound was able to touch 1.7025 before the release of the release and retreated to 1.7010 currently.
GBP / USD behaved with great restraint during the Asian session, trading near the 1.6990 level, but in European trading pair managed to mark of 1.70 and growing just above it. Despite the fact that yesterday's report confirmed the Bank of England policy unchanged, its text still contained hints that may convince traders in a more aggressive mood CB. First, the Bank of England said that it was surprised by the fact that the prices laid low probability of a rate hike in 2014. Secondly, it is already thinking about the potential consequences of an earlier increase. These two points can maintain the interest of the pound in the near future and accelerate the growth of currency before the next meeting of the Bank of England. Currently the pair is trading at 1.6990 with the initial purpose of the ascending 1.7025, as reported by the experts of RVD Markets (included in the Top Rated Forex Brokers of the Masterforex-V World Academy).
Key levels on GBP/USD
Central Pivot: 1.6973, below 1.6941 support levels are located, 1.6889, 1.6857 and above - the resistance levels are 1.7025, 1.7057 and 1.7109. Time Moving Averages deployed up, 200SMA is at 1.6880, and the daily 20EMA rolled up and is at 1.6861. Local deployed up and RSI is at 60. Levels on GBP / USD are the following: a pair strengthened 0.16% to 1.7022. Resistance is located at 1.7044 (maximum 5 August 2009), at 1.7100 (psychological level) and 1.7105 (low of October 20, 2008), and support - at 1.6920 (low of June 18), at 1.6900 (psychological level) and 1.6855 (peak daytime clouds).