The GBP/USD is prolonging its intraday correction on Monday around 1.6720, down from multi-year peaks beyond 1.6820 overnight.
Despite the current correction lower, the sterling keeps the bid tone backed by the recent upbeat growth forecasts by the BoE, expecting the UK economy to expand at an annual pace of 3.4% in 2014. “1.6800/10 is the next objective/resistance – with potential for the move to continue higher than that into the 1.70’s, maybe 1.73 longer term with a good wind behind the move”, noted Paul Robson, Senior FX Strategist at RBS. At the time of writing the pair is losing 0.14% at 1.6721 and a breakdown of 1.6644 (low Feb.14) would expose 1.6594 (low Feb.13). On the upside, the initial hurdle aligns at 1.6823 (2014 high Feb.17) followed by 1.6845 (high Nov.18 2009) and finally 1.6879 (high Nov.16 2009).