12 May 2015
GBP/USD risk tilted to the upside – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes technicals suggest that GBP/USD risk remain tilted towards the upside, with resistance seen above 1.5700.
Key Quotes
“GBP is a mid-performer among its peers despite a 0.6% gain to a fresh YTD high above its 200 day MA at 1.2624. Stronger domestic data provided the catalyst, with stronger than expected industrial production data helping to firm expectations for growth ahead of Wednesday’s employment and BoE inflation report.”
“GBPUSD short-term technicals: bullish—fresh YTD high is being confirmed by momentum indicators, hinting to the risk of further upside. However caution is warranted as we note that the RSI is in overbought territory above 70. Resistance is expected above 1.5700 and we see near term support around 1.5580.”
Key Quotes
“GBP is a mid-performer among its peers despite a 0.6% gain to a fresh YTD high above its 200 day MA at 1.2624. Stronger domestic data provided the catalyst, with stronger than expected industrial production data helping to firm expectations for growth ahead of Wednesday’s employment and BoE inflation report.”
“GBPUSD short-term technicals: bullish—fresh YTD high is being confirmed by momentum indicators, hinting to the risk of further upside. However caution is warranted as we note that the RSI is in overbought territory above 70. Resistance is expected above 1.5700 and we see near term support around 1.5580.”