9 Jul 2015
GBP/USD technicals biased lower – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, offers the technical and fundamental outlook for GBP/USD, noting that the bias remains for further downside but above 1.5436 will see upside gains.
Key Quotes
“GBP is flat, having pared its early gains in sympathy with EUR given the renewed focus on Greece arising from ECB policy-makers’ comments. The BoE has maintained policy with a 0.50% Bank Rate, the focus now shifting to details of the decision with the July 22nd release of MPC minutes. The fading of BoE policy expectations has been arrested with the release of stronger RICS housing price data, climbing for their fifth consecutive month back to levels last seen in mid-2014.”
“GBPUSD short-term technicals: bearish—too soon to call a turn, as momentum indicators remain biased to further downside. The 200 day MA at 1.5436 is a key level to watch, and a break back above would shift the focus to the July 7 open at 1.5605.”
Key Quotes
“GBP is flat, having pared its early gains in sympathy with EUR given the renewed focus on Greece arising from ECB policy-makers’ comments. The BoE has maintained policy with a 0.50% Bank Rate, the focus now shifting to details of the decision with the July 22nd release of MPC minutes. The fading of BoE policy expectations has been arrested with the release of stronger RICS housing price data, climbing for their fifth consecutive month back to levels last seen in mid-2014.”
“GBPUSD short-term technicals: bearish—too soon to call a turn, as momentum indicators remain biased to further downside. The 200 day MA at 1.5436 is a key level to watch, and a break back above would shift the focus to the July 7 open at 1.5605.”