FX GBP/USD
The combination of a broadly weak US dollar and the Bank of Englands decision to leave rates unchanged at 5.25 percent on March 6 allowed the GBP/USD pair to surge through the 2.00 level to hit a more than two month high of 2.0215 on Friday. However, resistance from the 200 SMA at 2.0131 and the psychologically important 2.02 level has kept the pair from surging significantly higher. Upcoming economic data out of the UK could shake the pair up, as producer price figures may suggest that inflation pressures continue to build, which may force the BOE to leave rates steady at 5.25 percent again in April. As a result, if the PPI input and output numbers are stronger than expected, GBP/USD could push above resistance to ultimately target the 61.8 percent fib of the decline from 2.1162 1.9338 at 2.0461. On the other hand, surprisingly soft data could help weigh GBP/USD down to return to the 2.00 level.
Does the British pound rally have more steam left? Discuss the topic in the DailyFX GBP/USD Forum. 
Sun Jun 28, 2009 1:15 pm by 
Subject: FX GBP/USD -, Equities FTSE 100 Index 
