As UK employment continues to rise do we see a test of the 1.70

April 16, 2014 by Nanakiver3

As the UK data in general continues to improve, the market appears to be pricing in rate hikes despite the Bank of England attempting to talk down any hints of a rate hike.


GBPUSD weekly chart

With this in mind we are now eyeing some upside targets for GBPUSD, despite us seeing 3 failed attempts to break 1.6820 it seems only a matter of time before we do.

A break is likely to see us test the phyc level 1.6850 above there is the 1.6870 November 2011 highs and above there the 1.7040, the August 2009 highs.

At present we like selling with a stop above the 1.6870 targeting a break lower on overall dollar strength, but we remain aware should we break the 1.6820 we expect a chunk of stops to be triggered.