28 Jun 2013
GBP/USD closing the week around 1.5200
Fxstreet.com (Edinburgh) - The sterling remains deeply into the red territory on Friday, pushing the GBP/USD to test fresh 4-week lows in the vicinity of 1.5160, although picking up pace afterwards.
GBP/USD would remain under pressure near-term
The pound is posed to suffer in the week ahead, as the first BoE MPC gathering commanded by M.Carney would accentuate the bearish tone surrounding the GBP. Adding to the grim scenario, the final prints from the manufacturing/services/construction PMI for the month of June are also due. According to Eric Theoret, Strategist at Scotiabank, the short-term technical studies look bearish, adding, “momentum, directional, and trend indicators are all suggestive of further downside. RSI at 38 leaves room for decline from current levels, with risk of fall down to 1.50 on continued retracement of early June rally”.
GBP/USD levels to watch
The pair is now losing 0.36% at 1.5202 with the next support at 1.5184 (61.8% of 1.4832-1.5753) followed by 1.5165 (low Jun.28) and then 1.5111 (low May 30). On the upside, a breakout of 1.5240 (high May 31) would open the door to 1.5279 (high Jun.28) and finally 1.5293 (50% of 1.4832-1.5753).
GBP/USD would remain under pressure near-term
The pound is posed to suffer in the week ahead, as the first BoE MPC gathering commanded by M.Carney would accentuate the bearish tone surrounding the GBP. Adding to the grim scenario, the final prints from the manufacturing/services/construction PMI for the month of June are also due. According to Eric Theoret, Strategist at Scotiabank, the short-term technical studies look bearish, adding, “momentum, directional, and trend indicators are all suggestive of further downside. RSI at 38 leaves room for decline from current levels, with risk of fall down to 1.50 on continued retracement of early June rally”.
GBP/USD levels to watch
The pair is now losing 0.36% at 1.5202 with the next support at 1.5184 (61.8% of 1.4832-1.5753) followed by 1.5165 (low Jun.28) and then 1.5111 (low May 30). On the upside, a breakout of 1.5240 (high May 31) would open the door to 1.5279 (high Jun.28) and finally 1.5293 (50% of 1.4832-1.5753).