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5 Mar 2014
GBP/USD consolidating onto the 167 handle
FXStreet (Guatemala) - GBP/USD is collecting itself on the 1.67 handle post a run up from 1.6060 making a high of 1.6736.
Jacqui Douglas, Senior Global Strategist at TD Securities noted that the services PMI was essentially unchanged at 58.2 in Feb, beating consensus of 58.0. She said the details were strong, with both employment and expectations gaining ground, and the report mentioned a further increase in backlogs and capacity constraints, meaning that production should remain strong. She also noted, “With the nonfarm payroll report looming on Friday, the market’s focus on Wednesday will turn to the ADP and ISM services reports. We look for ADP to remain relatively softer with a 148K print in February, while the ISM non-manufacturing index improves modestly to 54.2 from 54.0. The later Beige Book report could also prove more interesting than usual, potentially providing additional anecdotal evidence that the recent slowdown in US economic activity can be attributed to weather. This could help markets further discount the already small chance of the Fed halting tapering at the March FOMC meeting”.
GBP/USD Levels
The 20 DMA is 1.6600, the 50 DMA is 1.6516 and the 200 DMA is 1.5958. RSI (14) reads 60.37. Supports are 1.6559, 1.6583, 1.6617, 1.6640 and 1.6680. Spot is 1.6716, 1.6740, 1.6769 and 1.6823.
Jacqui Douglas, Senior Global Strategist at TD Securities noted that the services PMI was essentially unchanged at 58.2 in Feb, beating consensus of 58.0. She said the details were strong, with both employment and expectations gaining ground, and the report mentioned a further increase in backlogs and capacity constraints, meaning that production should remain strong. She also noted, “With the nonfarm payroll report looming on Friday, the market’s focus on Wednesday will turn to the ADP and ISM services reports. We look for ADP to remain relatively softer with a 148K print in February, while the ISM non-manufacturing index improves modestly to 54.2 from 54.0. The later Beige Book report could also prove more interesting than usual, potentially providing additional anecdotal evidence that the recent slowdown in US economic activity can be attributed to weather. This could help markets further discount the already small chance of the Fed halting tapering at the March FOMC meeting”.
GBP/USD Levels
The 20 DMA is 1.6600, the 50 DMA is 1.6516 and the 200 DMA is 1.5958. RSI (14) reads 60.37. Supports are 1.6559, 1.6583, 1.6617, 1.6640 and 1.6680. Spot is 1.6716, 1.6740, 1.6769 and 1.6823.