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29 Jan 2014
GBP/USD stalled at 1.6580, but not for long
FXstreet.com (Moscow) - GBP/USD spent the morning around 1.6580 area consolidating before the key FOMC meeting.
It’s all about the FOMC
The British calendar for today is practically empty – only Nationwide House Price Index which rarely triggers any market interest. The scheduled for release Mark Carny’s speech hardly initiates any reaction as well. The market will be all in expectations. The FOMC meeting may trigger mild sell-off of the pound in case of further QE3 tapering. However, given the strong British fundamentals there is some possibility of quick rebound after the pair reaches 1.6491 support level. The move lower may speed up in case of dovish comments on monetary policy outlook from the FED.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6582, with support below at 1.6537 (S1), 1.6491 (S2) and 1.6446 (S3), with resistance above at 1.6628 (R1), 1.6673 (R2), and 1.6719 (R3). Hourly Moving Averages are largely flat, with the 200SMA at 1.6507, and the daily 20EMA bullish at 1.6480. Hourly RSI is neutral at 48.
It’s all about the FOMC
The British calendar for today is practically empty – only Nationwide House Price Index which rarely triggers any market interest. The scheduled for release Mark Carny’s speech hardly initiates any reaction as well. The market will be all in expectations. The FOMC meeting may trigger mild sell-off of the pound in case of further QE3 tapering. However, given the strong British fundamentals there is some possibility of quick rebound after the pair reaches 1.6491 support level. The move lower may speed up in case of dovish comments on monetary policy outlook from the FED.
What are today’s key GBP/USD levels?
Today's central pivot point can be found at 1.6582, with support below at 1.6537 (S1), 1.6491 (S2) and 1.6446 (S3), with resistance above at 1.6628 (R1), 1.6673 (R2), and 1.6719 (R3). Hourly Moving Averages are largely flat, with the 200SMA at 1.6507, and the daily 20EMA bullish at 1.6480. Hourly RSI is neutral at 48.