8 Jul 2015
GBP/USD focus shifts lower to 1.5273 – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, maintains a bearish outlook on GBP/USD, expecting the pair to head lower towards the 100 DMA at 1.5273.
Key Quotes
“GBP is weak, underperforming with a decline of 0.6% as market participants pare risk in response to the budget release, with a focus on fiscal austerity and its implications for growth, inflation and BoE policy. OIS have continued to soften, hinting to a moderation in policy expectations ahead of Thursday’s BoE decision. Policy is expected to remain unchanged at 0.5% with limited details as market partici-pants await the minutes’ release on July 22nd.”
“GBPUSD short-term technicals: bearish—GBP has made a decisive break below its 200 day MA (1.5440), shifting the focus to the 100 day MA at 1.5273. Bearish momentum indicators hint to acceleration and we note that the RSI at 36 provides ample space for further downside.”
Key Quotes
“GBP is weak, underperforming with a decline of 0.6% as market participants pare risk in response to the budget release, with a focus on fiscal austerity and its implications for growth, inflation and BoE policy. OIS have continued to soften, hinting to a moderation in policy expectations ahead of Thursday’s BoE decision. Policy is expected to remain unchanged at 0.5% with limited details as market partici-pants await the minutes’ release on July 22nd.”
“GBPUSD short-term technicals: bearish—GBP has made a decisive break below its 200 day MA (1.5440), shifting the focus to the 100 day MA at 1.5273. Bearish momentum indicators hint to acceleration and we note that the RSI at 36 provides ample space for further downside.”