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GBP/USD has plenty to play for, sub 1.64 handle

(Guatemala) - GBP/USD managed a score through the 1.64 handle in the US session and is holding up into the Asian day also.

Valeria Bednarik, chief analyst at FXStreet noted earlier that the 1 hour chart shows price holding below a key Fibonacci level, with a mild positive tone coming from technical readings, while the 4 hours chart shows price above a bullish 20 SMA yet indicators also lacking upward strength, as per holding in neutral territory. “For the most, the upward tone seems ready to resume, with the upside now favoured on a break above mentioned Fibonacci level, eyeing a short term advance up to 1.6460”.

GBP/USD data to follow

BoE’s governor Carney will be speaking tomorrow evening which may include mention of rates and timings of increases and give rise to some directional play through the pound while otherwise there are a number of data releases from the US to come later at the end of week, namely durable goods, jobs data, GDP, PCE and consumer sentiment. Tomorrow and more immediately, we will get US new home sales that RBS analysts said have been fairly volatile over the past several months, but they explained also that the trend has been generally flat in the 420-440K annualized pace since mid-2013. “We see new home sales hovering at the low end of that range, at 420K annualized units in August”.

GBP/USD levels

Support levels: 1.6345 1.6300 1.6275

Resistance levels: 1.6415 1.6460 1.6500

United States 2-Year Note Auction up to 0.589% from previous 0.53%

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