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8 Jan 2014
GBP/USD reaction to FOMC, firm dollar.
FXstreet.com (Guatemala) - The reaction to the minutes has been so far benign, with GBP/USD trading with a bearish bias, the pair has ticked down slightly to find a low of 1.6442 on the 5 min chart.
The minutes came with no real surprises and revealed that a number of the members wanted to proceed cautiously with first cut to QE, use measured steps. "Most" are concerned about QE risks to financial stability and “most” participants are confident in jobs market gains. Officials saw waning benefits from monthly bond purchases and some wanted large cuts to purchases. The biggest reaction in the pair today came from The ADP employment report that showed the US private sector added 238,000 new jobs in December, beating forecast of 200,000. Meanwhile, November ADP jobs number was revised up 14,000 to 229,000.
GBP/USD Levels
The 20 DMA is 1.6397, the 50 DMA is 1.6262 and the 200 DMA is 1.5714. RSI (14) reads 55.82. Supports are ascending from 1.6305, 1.6327,1.6337, 1.6374,1.6395. Spot is 1.6440 while resistances are1.6503 1.6558 and 1.6580.
The minutes came with no real surprises and revealed that a number of the members wanted to proceed cautiously with first cut to QE, use measured steps. "Most" are concerned about QE risks to financial stability and “most” participants are confident in jobs market gains. Officials saw waning benefits from monthly bond purchases and some wanted large cuts to purchases. The biggest reaction in the pair today came from The ADP employment report that showed the US private sector added 238,000 new jobs in December, beating forecast of 200,000. Meanwhile, November ADP jobs number was revised up 14,000 to 229,000.
GBP/USD Levels
The 20 DMA is 1.6397, the 50 DMA is 1.6262 and the 200 DMA is 1.5714. RSI (14) reads 55.82. Supports are ascending from 1.6305, 1.6327,1.6337, 1.6374,1.6395. Spot is 1.6440 while resistances are1.6503 1.6558 and 1.6580.