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9 Sep 2013
GBP/USD pops up higher ahead of Fed’s Williams comments
FXstreet.com (Athens)- The GBP/USD was trading downwards since Asian’s opening trading, but seems to regain uptrend momentum ahead of John William speech.
Will the Fed’s Williams comments give solid momentum to the GBP/USD?
Despite the fact that we are ahead of a very light calendar today, there is a Scheduled commentary from San Francisco Fed President John Williams. John Williams isn’t a member of the rate-setting FOMC committee this year, but that does not seem to bother much investors, due to the fact that that Williams speech is likely to provide the last piece of data before next week’s monetary policy announcement. To elaborate on, the investors would focus on Williams speech, as already a small initial cutback of asset purchases this month is probably priced in at this point. However, traders around the globe will try to see behind the curtains; that means that investors would try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end (such as a dovish tone from Mr Williams).
TECHNICAL PERSPECTIVE AND OUTLOOK ON GBP/USD
Gareth Berry, from UBS suggests that “The recent upside opens the doors to test the strong
resistance range at 1.5718/50. Support is at 1.5522 ahead of 1.5423.” At the time of writing the cable is trading at 1.5674, up 0.28% and almost 50 pips higher since the opening on Sunday’s Asian trading. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes framework. Daily pivot point support can be found at S3: 1.5600 S2: 1.5559 S1:1.5520 R1:1.5714 R2:1.5753 R3:1.5793, respectively.
Will the Fed’s Williams comments give solid momentum to the GBP/USD?
Despite the fact that we are ahead of a very light calendar today, there is a Scheduled commentary from San Francisco Fed President John Williams. John Williams isn’t a member of the rate-setting FOMC committee this year, but that does not seem to bother much investors, due to the fact that that Williams speech is likely to provide the last piece of data before next week’s monetary policy announcement. To elaborate on, the investors would focus on Williams speech, as already a small initial cutback of asset purchases this month is probably priced in at this point. However, traders around the globe will try to see behind the curtains; that means that investors would try to figure out news-flow arguing against a sustained stimulus reduction cycle through the year-end (such as a dovish tone from Mr Williams).
TECHNICAL PERSPECTIVE AND OUTLOOK ON GBP/USD
Gareth Berry, from UBS suggests that “The recent upside opens the doors to test the strong
resistance range at 1.5718/50. Support is at 1.5522 ahead of 1.5423.” At the time of writing the cable is trading at 1.5674, up 0.28% and almost 50 pips higher since the opening on Sunday’s Asian trading. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes framework. Daily pivot point support can be found at S3: 1.5600 S2: 1.5559 S1:1.5520 R1:1.5714 R2:1.5753 R3:1.5793, respectively.