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20 Apr 2015
GBP/USD: expect another downside test - Scotiabank
FXStreet (Barcelona) - According to Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, a broad shift in USD has weakened the GBP, and with election uncertainty also weighing on the pair, GBP/USD might move to test its lows in the weeks to come.
Key Quotes
“GBP is soft, having lost 0.25% since Friday’s close on the back of the broad USD shift and GBP’s failure to break above the 50‐day moving average (1.5049).”
“There was no data released today, with the highlight to come from BoE minutes on Wednesday followed by retail sales on Thursday. Accordingly, this leaves GBP vulnerable to election uncertainty, which should continue to weigh on GBP and see it test its lows in the next several weeks.”
“GBPUSD short‐term technicals: mixed—GBP’s failure to break above the 50‐day MA at 1.5049, is a warning sign that upside GBP momentum is not powerful enough to drive substantial GBP strength.”
“Accordingly the outlook is relatively mixed, with support at 1.4866 (recent congestion) and resistance at the 50‐day (1.5049).”
Key Quotes
“GBP is soft, having lost 0.25% since Friday’s close on the back of the broad USD shift and GBP’s failure to break above the 50‐day moving average (1.5049).”
“There was no data released today, with the highlight to come from BoE minutes on Wednesday followed by retail sales on Thursday. Accordingly, this leaves GBP vulnerable to election uncertainty, which should continue to weigh on GBP and see it test its lows in the next several weeks.”
“GBPUSD short‐term technicals: mixed—GBP’s failure to break above the 50‐day MA at 1.5049, is a warning sign that upside GBP momentum is not powerful enough to drive substantial GBP strength.”
“Accordingly the outlook is relatively mixed, with support at 1.4866 (recent congestion) and resistance at the 50‐day (1.5049).”