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17 Sep 2013
GBP/USD strikes back above the 1.5900
FXstreet.com (Athens)- The GBP/USD stroke back above 1.5900 earlier for the first time today, ahead of UK CPI data.
The GBP/USD climbs back again above 1.5900, but CPI could well be the catalyst for a correction
The GBP/USD is trading slightly higher on Tuesday since the opening of the Asian trading session and a bit earlier managed to overcome again the 1.5900 barrier, after having touched an eight month high yesterday at 1.5962. The cable has gained solid ground since the early September; in fact, the pound has earned approximately 400 pips since the opening of the 2th of September (1.5507). Therefore traders should bear in mind that the cable remains at high risk for a short term correction and the today’s UK CPI data may provide a reading to spark a more meaningful reversal of the pair. As it is widely known, if there is a soft reading of CPI as expected, the BoE will find further scope to retain its highly accommodative policy stance for an extended period of time.
Technical Outlook and Strategic Bias on GBP/USD
According to Karen Jones, Head Technical Analyst of Commerzbank, “while we note that the market continues to accelerate higher and indeed this has been for more aggressive than we anticipated, it is still regarded as a correction only. We note the 13 count on the TD combo and TD perfected set up on the weekly chart and this suggests a warning for further moves higher at present, currently we would recommend now exiting long positions.”
The GBP/USD climbs back again above 1.5900, but CPI could well be the catalyst for a correction
The GBP/USD is trading slightly higher on Tuesday since the opening of the Asian trading session and a bit earlier managed to overcome again the 1.5900 barrier, after having touched an eight month high yesterday at 1.5962. The cable has gained solid ground since the early September; in fact, the pound has earned approximately 400 pips since the opening of the 2th of September (1.5507). Therefore traders should bear in mind that the cable remains at high risk for a short term correction and the today’s UK CPI data may provide a reading to spark a more meaningful reversal of the pair. As it is widely known, if there is a soft reading of CPI as expected, the BoE will find further scope to retain its highly accommodative policy stance for an extended period of time.
Technical Outlook and Strategic Bias on GBP/USD
According to Karen Jones, Head Technical Analyst of Commerzbank, “while we note that the market continues to accelerate higher and indeed this has been for more aggressive than we anticipated, it is still regarded as a correction only. We note the 13 count on the TD combo and TD perfected set up on the weekly chart and this suggests a warning for further moves higher at present, currently we would recommend now exiting long positions.”