16 Jun 2015
GBP/USD forecast: Bullish target at 1.5850 – Westpac
FXStreet (Barcelona) - The recent price action suggests GBP/USD has resumed its medium term uptrend, with bullish targets at 1.5850 and even 1.6150, according to the Research Team at Westpac.
Key Quotes
“Macro: EUR/GBP drifting lower into the middle of the 0.70-0.74 range that has been in place over the last three months but would argue that some caution is warranted for EUR/GBP shorts with UK growth momentum still cooling according to a bunch of surveys and that may well translate into a softer labour market update this week.”
“Model: GBP remains the most meaningful peripheral European currency short position at -19% of the portfolio. With close to half of the model's bearish tilt on GBP being a function of one of our slowest moving signals - the country's poor external accounts - the model is likely to remain short GBP for a good deal longer than has already been the case.”
“Technical: Powerful close last week completes the recent downward correction and reinstates the medium term uptrend. We initially target 1.5850/00 with risk to 1.6150/00.”
Key Quotes
“Macro: EUR/GBP drifting lower into the middle of the 0.70-0.74 range that has been in place over the last three months but would argue that some caution is warranted for EUR/GBP shorts with UK growth momentum still cooling according to a bunch of surveys and that may well translate into a softer labour market update this week.”
“Model: GBP remains the most meaningful peripheral European currency short position at -19% of the portfolio. With close to half of the model's bearish tilt on GBP being a function of one of our slowest moving signals - the country's poor external accounts - the model is likely to remain short GBP for a good deal longer than has already been the case.”
“Technical: Powerful close last week completes the recent downward correction and reinstates the medium term uptrend. We initially target 1.5850/00 with risk to 1.6150/00.”