2 Jul 2013
GBP/USD testing lows below 1.5200
FXstreet.com (Edinburgh) - The bearishness surrounding the sterling is now dragging the GBP/USD to a retest of levels sub 1.5200 on Tuesday, challenging at the same time weekly lows (1.5183 on Monday).
GBP/USD focused on the BoE meeting
The BoE will hold the first meeting with the new Governor M.Carney on Thursday. “The headwinds of domestic austerity, inflation and the Eurozone recession means that the BoE will have to work hard to insure the recovery remains on track. Although we agree with the consensus that the prospects of further QE this year have dropped, Carney is likely to emphasise the BoE’s accommodative position. The most obvious tool that Carney is likely to invoke is that of forward guidance”, commented Jane Foley, Strategist at Rabobank.
GBP/USD tech levels
At the moment the pair is down 0.13% at 1.5198 and a break below 1.5183 (low Jul.1) would open the door to 1.5165 (low Jun.28) and then 1.5111 (low May 30). On the upside, the initial hurdle lies at 1.5249 (high Jul.1) followed by 1.5279 (high Jun.28) and finally 1.5346 (high Jun.27). In addition, analysts at Autochartist can see an emerging triangle pattern in the 60-min charts, pointing to further continuation of the price action.
GBP/USD focused on the BoE meeting
The BoE will hold the first meeting with the new Governor M.Carney on Thursday. “The headwinds of domestic austerity, inflation and the Eurozone recession means that the BoE will have to work hard to insure the recovery remains on track. Although we agree with the consensus that the prospects of further QE this year have dropped, Carney is likely to emphasise the BoE’s accommodative position. The most obvious tool that Carney is likely to invoke is that of forward guidance”, commented Jane Foley, Strategist at Rabobank.
GBP/USD tech levels
At the moment the pair is down 0.13% at 1.5198 and a break below 1.5183 (low Jul.1) would open the door to 1.5165 (low Jun.28) and then 1.5111 (low May 30). On the upside, the initial hurdle lies at 1.5249 (high Jul.1) followed by 1.5279 (high Jun.28) and finally 1.5346 (high Jun.27). In addition, analysts at Autochartist can see an emerging triangle pattern in the 60-min charts, pointing to further continuation of the price action.