GBP/USD
The movement in Euro affects the pound.
The Euro finished lower as the lack of concrete news regarding the European Union’s plan to guarantee Greece’s debt caused investors to remain nervous and skeptical that a resolution would be reached over the next few days.
The pound hit the 1 hour EMA200 at 1.5765, but gave ground immediately to end the day back in the 1.56 region. Morning trading saw the pound gaining back to the resistance at EMA100 at the 1 hour chart.
Overall, the mood is cautious. Pound has not been able to clear the 1.57 resistance line and the Greece case may result in a big movement down.
Bernanke gave the dollar a boost after hinting that the Fed was gearing to hike interest rates as part of its exit strategy. While most investors have been trying to forecast when the Fed would begin raising the Fed Funds Rate, Bernanke surprised everyone by stating that the Fed may raise the discount rate charged on direct loans to commercial banks. This pressure down the pound during US trading hours.
The daily chart shows a support at 1.555 and a resistance at 1.574, then 1.585.
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