FXStreet (Guatemala) – GBP/USD is currently trading at 1.5601 with a high of 1.5630 and a low of 1.5531.
GBP/USD has been better bid at the start of the week and in the Greek referendum aftermath as the pound attracts investors to the table on safe haven flows and amid growing speculation that a Fed hike is not coming as soon as first anticipated. however, the pound was unable to stage further gains much further through the 100hr MA located just below the highs at 1.5621.
Greek referendum aftermath
After an initial panic and flight to safety, financial markets were taking some peace of mind that EU leaders and Greece’s creditors are seeking to try and keep the nation in the Eurozone and avoid a Grexit.
Merkel let markets know that the door remains open to talks with Greece. She and added that a new proposal should be available this week. The Governing Council of the ECB is determined to use all the instruments available within its mandate and, for now, has decided to leave the Emergency Assistance Liquidity (ELA) ceiling for Greek banks unchanged at €89 billion. Yanis Varoufakis left his position, shocking markets while a new finance minister, Euclid Tsaklotos, has been appointed to take up his seat at the negotiating table.
GBP/USD technically
The market has moved back up from the three month uptrend at 1.5529 and carried on to the 100 hr MA. However, Karen Jones, chief analyst at Commerzbank suggest that while they would allow for this to hold the initial test, it expected to shortly give way. “Only a close here will cast attention back to the support at 1.5171, the June low and beyond. Rallies should find initial resistance 1.5686, and again at 1.5787 and be contained by the 1.5930 recent peak.”
(Market News Provided by FXstreet)