Back
18 Dec 2013
GBP/USD whipsaws on FOMC tapering
FXstreet.com (Barcelona) - It has been one way traffic for GBP/USD today, with spot climbing from its low of 1.6262, to post a high at 1.6404, before the Fed’s taper call saw spot drop to 1.6343 before immediately retracing and pushing higher.
GBP/USD presses higher on taper call
GBP/USD’s daytime ascent came off the back of better than expected UK ILO Unemployment numbers and the MPC decision to hold rates at 0.25%. Further, ratings agency Fitch commented to reaffirm the UK’s AA+ status as being stable. The FOMC decision to hold rates, but trim stimulus measures by $10bln a month saw spot fall sharply in the initial reaction, before completely retracing and pushing spot on to fresh highs at 1.6417 where it is presently trading.
GBP/USD Technicals
Hourly RSI sits at 80 in overbought territory, with ADX at 42 and bearish. The FXstreet.com proprietary OB/OS Index and Trend Index are overbought and slightly bullish respectively. meanwhile the hourly 200 SMA sits at 1.6354 and climbing while the daily 20 EMA is neutral at 1.6291. Today’s pivot point can be found at 1.6271, with upcoming support and resistance at 1.6394 (R2) and 1.6451 (R3).
GBP/USD presses higher on taper call
GBP/USD’s daytime ascent came off the back of better than expected UK ILO Unemployment numbers and the MPC decision to hold rates at 0.25%. Further, ratings agency Fitch commented to reaffirm the UK’s AA+ status as being stable. The FOMC decision to hold rates, but trim stimulus measures by $10bln a month saw spot fall sharply in the initial reaction, before completely retracing and pushing spot on to fresh highs at 1.6417 where it is presently trading.
GBP/USD Technicals
Hourly RSI sits at 80 in overbought territory, with ADX at 42 and bearish. The FXstreet.com proprietary OB/OS Index and Trend Index are overbought and slightly bullish respectively. meanwhile the hourly 200 SMA sits at 1.6354 and climbing while the daily 20 EMA is neutral at 1.6291. Today’s pivot point can be found at 1.6271, with upcoming support and resistance at 1.6394 (R2) and 1.6451 (R3).