27 Apr 2015
GBP/USD bid on rate differentials and headed to key resistances
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5246 with a high of 1.5263 and a low of 1.5105.
As we head into the final two weeks of the UK elections, a Labour lead is rising but there is still plenty of uncertainty that will essentially keep the markets nervous around Sterling.
However, for now at least, GBP/USD is bid o interest differentials and approaching key resistance, that if broken, could well bring in the Feb 2015 peak back in to the picture at 1.5532. 1.5350 will be the first big test. Karen Jones, chief analyst at Commerzbank explained that, "A close above the 1.5186 Fibonacci retracement would at least temporarily halt the bear trend and introduce scope to 1.5550/70 zone."
However, this is a strong resistance zone, and Karen Jones actually has other ideas for Sterling longer term. "Our longer term target remains the 1.4291/29 area – this is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."
As we head into the final two weeks of the UK elections, a Labour lead is rising but there is still plenty of uncertainty that will essentially keep the markets nervous around Sterling.
However, for now at least, GBP/USD is bid o interest differentials and approaching key resistance, that if broken, could well bring in the Feb 2015 peak back in to the picture at 1.5532. 1.5350 will be the first big test. Karen Jones, chief analyst at Commerzbank explained that, "A close above the 1.5186 Fibonacci retracement would at least temporarily halt the bear trend and introduce scope to 1.5550/70 zone."
However, this is a strong resistance zone, and Karen Jones actually has other ideas for Sterling longer term. "Our longer term target remains the 1.4291/29 area – this is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."