"The currency pair GBP/USD is making an attempt to take the level of 1.6730 and grow to yesterday's highs of 1.6740 after the NAHB Housing Market Index fell to 46 points from 56 and 56 projected in the previous period, which indicates the deterioration of the situation on the market", reported Forex analysts of Broker RVD Markets. At the same levels of support for GBP/USD at 1.6623 marked, 1.6644, 1.6667 and 1.6694, while resistance levels - at 1.6757, 1.6796, 1.6823 and 1.6845.
On the background of mixed signals today, GBP/USD traded lower.
As forex analysts quote, the currency pair rose on the market today due to the fact that markets are laid in the price increase rate of the Bank of England in 2015. But then the pair fell due to mixed signals from the Central Bank of England. In particular, the Bank of England's Miles said that a rate hike is a primitive tool for the real estate market. Against this background, the pair, reaching a high of 1.6825, immediately dropped to around 1.6710.
Although this statement yesterday to the Bank of England repeated again, "That the rate increase will be limited and gradual, as a rather strong resistance will continue to hold fast to their promotion". And this, according to forex analysts, would be attractive to investors in the forex market.
The happy pair traded in the forex market to lows near the 1.6720 mark, continuing the intraday correction and moving away from multi-peak highs 1.6820 achieved overnight. Couple in demand in the forex market, even despite the revisions improve economic forecasts for GDP growth in 2014, which implies an increase of 3.4%.
Also forex analysts note that according to the report, consumer prices in the UK rose by 1.9 per cent per annum in January, compared with an increase of 2.0 percent in December and thus showed the weakest growth since November 2009. After this report the day the pair retreated to the 3-day lows near the 1.6660 mark and continued downward correction.
British reports on today is no longer expected, and tomorrow forex participants expect the Bank of England minutes and the employment report. According to the analyst bank Commerzbank, Karen Jones, "the pair GBP/USD slightly delayed, and daily RSI has not confirmed the recent high 1.6822. As a consequence, a correction down or at least consolidation in the near future".
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