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Forex: GBP/USD hovering over 1.6125

By FXstreet.com,  December 13, 2012, 06:32:00 AM EDT

FXstreet.com (Barcelona) - The sterling is following its European counterpart on Thursday, easing some ground after post-Fed highs in the boundaries of 1.6180

It is worth noting the pound has found extra support after the ILO unemployment rate remained intact at 7.8% in the three months finished in October, broadly in line with forecasts. According to M.Mohi-uddin, Head of Foreign Exchange Strategy at UBS, "We stay wary of Cable above 1.60. The UK economy clearly remains fragile… Furthermore, the government has missed its fiscal targets owing to weaker than expected growth. In the Autumn Statement, Chancellor Osborne announced the UK budget would remain in deficit for two more years than earlier forecast to 2017/2018. UBS Economics believes there is a high likelihood the UK will now lose its AAA status as fiscal debt is set to rise to 97% of GDP".

The cross is now losing 0.22% at 1.6113 with the next support at 1.6095 (low Dec.12) followed by 1.6083 (MA10d) and 1.6069 (low Dec.11).
On the other hand, a breakout of 1.6148 (high Dec.13) would clear the way to 1.6162 (Upper Bollinger) and finally 1.6173 (high Dec.12).




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

Referenced Stocks:



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