5 Nov 2013
Flash: GBP/USD around 1.6060. BoE looms. Where to now? – UBS and RBS
FXstreet.com (Edinburgh) -The sterling remains buoyant after the upbeat result from the UK Services PMI during October, pushing the GBP/USD to test weekly highs in the area of 1.6060 so far. The next big event for the pound will be the BoE MPC meeting on Thursday. The pair may find further fuel for its upside, as the tone from the gathering would be largely unchanged.
Analysts at UBS remain bullish on the pair, saying, “The latest weakness does not change the broader bullish picture. There is a strong support at 1.5894. Resistance is at 1.6078 ahead of 1.6260”.
In addition, Strategist Paul Robson at RBS noted “We also have had the break, retest and fail of the old uptrend line since July, which also has an Evening Star formation and should mean that any rallies struggle by the 1.6075 area and that we see a test lower of support, initially at 1.5860/80 and, if we get below that, of 1.5650”.
Analysts at UBS remain bullish on the pair, saying, “The latest weakness does not change the broader bullish picture. There is a strong support at 1.5894. Resistance is at 1.6078 ahead of 1.6260”.
In addition, Strategist Paul Robson at RBS noted “We also have had the break, retest and fail of the old uptrend line since July, which also has an Evening Star formation and should mean that any rallies struggle by the 1.6075 area and that we see a test lower of support, initially at 1.5860/80 and, if we get below that, of 1.5650”.