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26 Jun 2013
GBP/USD in 3-week lows
Fxstreet.com (Edinburgh) - The sterling continues to grind lower on Wednesday, dragging GBP/USD to fresh 3-week lows in the boundaries of 1.5330.
GBP/USD heading to 1.5300
The sterling remained apathetic to the BoE’s Financial Stability Report and Osborne’s Spending Review, while it seems to be more affected by MPC’s Miles, who advocated for further easing. The pound is also taking the hit after dovish comments by ECB’s Draghi. Camilla Sutton, Strategist at Scotiabank noted that the outlook on the pair remains bearish in the short term, adding “with most signals in sell territory and spot suggesting building downside momentum. In addition, spot has broken through the 50-day MA of 1.5387 and now flirting with a break of the 100-day MA at 1.5312. We expect further near-term weakness with a test down to 1.5200 in the near-term”. Recall that the bank holds a year-end target of 1.45 for GBP/USD.
GBP/USD critical levels
As of writing, the pair is down 0.39% at 1.5361 with the immediate support at 1.5300 (psychological level) ahead of 1.5293 (50% of 1.4832-1.5753) and then 1.5290 (low Jun.5). On the flip side, a break above 1.5442 (high Jun.26) would open the door to 1.5480 (high Jun.25) and finally 1.5500 (psychological level).
GBP/USD heading to 1.5300
The sterling remained apathetic to the BoE’s Financial Stability Report and Osborne’s Spending Review, while it seems to be more affected by MPC’s Miles, who advocated for further easing. The pound is also taking the hit after dovish comments by ECB’s Draghi. Camilla Sutton, Strategist at Scotiabank noted that the outlook on the pair remains bearish in the short term, adding “with most signals in sell territory and spot suggesting building downside momentum. In addition, spot has broken through the 50-day MA of 1.5387 and now flirting with a break of the 100-day MA at 1.5312. We expect further near-term weakness with a test down to 1.5200 in the near-term”. Recall that the bank holds a year-end target of 1.45 for GBP/USD.
GBP/USD critical levels
As of writing, the pair is down 0.39% at 1.5361 with the immediate support at 1.5300 (psychological level) ahead of 1.5293 (50% of 1.4832-1.5753) and then 1.5290 (low Jun.5). On the flip side, a break above 1.5442 (high Jun.26) would open the door to 1.5480 (high Jun.25) and finally 1.5500 (psychological level).