8 Mar 2016
GBP/USD: a bullish bias despite Brexit - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained that the British Pound surged to a fresh 2-week high of 1.4283 against the greenback, helped by news that the Bank of England is ready to offer extra liquidity around the time of the Brexit referendum.
Key Quotes:
"The Central Bank said it will closely monitor market conditions, and that it will add three extra indexes LTRO's by the ends of June. Adding to dollar's broad weakness, the news brought some relief to those expecting a plummeting Pound, should the kingdom leave the EU."
"Anyway, and from a technical point of view, the pair advanced for sixth day in-a-row, with a daily close above 1.4250 suggesting an interim bottom has taken place. The price is now aiming to fill the weekly opening gap left last February 21st, at 1.4356, the next probable bullish target on a break above 1.4300."
"The 4 hours chart, shows that the rally stalled around its 200 EMA, but an early slide met buying interest around a bullish 20 SMA, currently around 1.4160. In the same chart, the RSI indicator heads north around 69, also supporting the ongoing bullish bias, although the Momentum indicator has lack its previous bullish slope, and turned slightly lower within bullish territory, suggesting some consolidation before next leg north."
Key Quotes:
"The Central Bank said it will closely monitor market conditions, and that it will add three extra indexes LTRO's by the ends of June. Adding to dollar's broad weakness, the news brought some relief to those expecting a plummeting Pound, should the kingdom leave the EU."
"Anyway, and from a technical point of view, the pair advanced for sixth day in-a-row, with a daily close above 1.4250 suggesting an interim bottom has taken place. The price is now aiming to fill the weekly opening gap left last February 21st, at 1.4356, the next probable bullish target on a break above 1.4300."
"The 4 hours chart, shows that the rally stalled around its 200 EMA, but an early slide met buying interest around a bullish 20 SMA, currently around 1.4160. In the same chart, the RSI indicator heads north around 69, also supporting the ongoing bullish bias, although the Momentum indicator has lack its previous bullish slope, and turned slightly lower within bullish territory, suggesting some consolidation before next leg north."