Topic: COZfx: Pound vs. dollar near to 5 years high

COZforex: For the past trading session, the GBP rise 0.30% against the USD and closed at 1.6876 as the latter declined following the release of a soft US GDP data for the first-quarter.

In the UK, BoE’s Andrew Haldane, in a testimony to lawmakers, opined that interest rates in the nation were widely expected to rise only gradually and not immediately adding that it constituted the most central element in the central bank’s forward guidance. Furthermore, he highlighted his agreement to the MPC’s view on economy’s slackness by stating that central bank’s expectation for slackness between 1% to 1.5% ranges seems a reasonable estimate.

Meanwhile, another BoE policymaker, Spencer Dale stated that UK housing market was not showing signs of a price bubble at the moment but at the very same time he cautioned that policymakers “should be nervous” about the pace of the recovery.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.6823, and a decline through could take it to the next support line of 1.6767. Meanwhile, the pair is predicted to find its first resistance at 1.6919, and a rise through could take it to the next resistance line of 1.6959.

Market participants keenly await UK’s Markit manufacturing PMI, consumer credit and mortgage approvals data, slated for release later today.

(COZ forex UK)