GBP/USD Gains Support

 | May 15, 2014 05:34AM ET

The currency pair GBP/USD has broken through 1.6820 and has 1.6841 before the report on GDP was released. The pair is currently trading near the mark of 1.6791. After the GDP release, the pair got support on positive comments from Carney, a Governor of the Bank of England, on large-scale restoration of the British economy. Carney’s statements helped the pair to break the level of 1.6820 before the release of GDP for the first quarter, which reflected the growth of 0.8% q / q and 3.1% y / y vs. the forecast 0.9% q / q and 3.2% y / y, - said the analysts at ArsenalFX.

Economic growth has allowed the pair to reach 1.6791. Next target is 1.6770. Key levels for the pair GBP/USD: central pivot point is at 1.6814, below there are the support levels of 1.6770, 1.6732 and 1.6688; and above – there are the resistance levels of 1.6852, 1.6896 and 1.6934. Time Moving Averages mostly deployed up and the 200SMA is at 1.6804, and the daily 20EMA is rolled up and is at 1.6747. The hourly RSI is deployed down and is located at 41.

h2 The CPI of German exceeds the forecasts – Commerzbank./h2

Morten Helt, a Senior Analyst of the Danske Bank, believes that the German CPI is to be higher than it is expected on April, 29th 2014. Key messages are: some interesting indicators are published such as German CPI for April in the Eurozone today. The terms of celebrating Easter this year caused the fall of the March figure, due to the April recovery amid prices rising for tours, hotels and restaurants.

h2 EUR/GBP retreats from the resistance at 0.8250./h2

EUR/GBP opened at 0.8240 and rose in the morning, but the strength of the Pound caused a drop to the minimum at 0.8236. The Pound will control the pair movements. The data Germany GFK has already been obtained which reflected the consumer sentiment index unchanged at 8.5, moderately supporting the single currency.

Carney's said that economic growth is activated, maintaining the Pound. The GDP data for the first quarter is very important because they can confirm that the rate of growth of the British economy is the fastest among the ones of the G7.

Key levels for EUR/GBP, according to ArsenalFX: The Central Pivot is at 0.8234, below there are the support levels of 0.8224, 0.8205 and 0.8195, and above – there are the resistance levels of 0.8253, 0.8263 and 0.8282. Time moving averages are deployed up, the 200SMA is at 0.8227, and the daily 20EMA is rolled down and is at 0.8250. The hourly RSI is deployed up and is at 57.