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26 Mar 2013
Forex Flash: What does the GBP/USD have to offer? – RBS, Commerzbank and UBS
FXstreet.com (Barcelona) - The sterling is advancing marginally on Tuesday, unable to follow through the key resistance at 1.5200 as Cyprus woes continue to weight on investors’ sentiment.
“The less dovish BoE minutes last week is likely to have contributed to the slight pull back in the amount of easing priced in for the BoE compared to the previous week. However, this pull back seems likely to be reversed if data continues to point to a weak economy given the BoE may end up with little choice but to ease policy further”, assessed Melinda Burguess, FX Trading Strategist at RBS.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented after the cross returned to the area of 1.5270: “It is possible that we will see the up move terminate here, but the intraday charts are giving conflicting signals and the Elliott wave count suggests that we should allow for a 1.5350/1.5475 move prior to failure”.
In addition, G.Yu and G.Berry, Strategists at UBS, confirmed the bank’s neutral outlook on the cross, saying, “Resistance is at 1.5321 ahead of 1.5424 - which should hold any upside. Support is at 1.5102 ahead of 1.5027”.
“The less dovish BoE minutes last week is likely to have contributed to the slight pull back in the amount of easing priced in for the BoE compared to the previous week. However, this pull back seems likely to be reversed if data continues to point to a weak economy given the BoE may end up with little choice but to ease policy further”, assessed Melinda Burguess, FX Trading Strategist at RBS.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, commented after the cross returned to the area of 1.5270: “It is possible that we will see the up move terminate here, but the intraday charts are giving conflicting signals and the Elliott wave count suggests that we should allow for a 1.5350/1.5475 move prior to failure”.
In addition, G.Yu and G.Berry, Strategists at UBS, confirmed the bank’s neutral outlook on the cross, saying, “Resistance is at 1.5321 ahead of 1.5424 - which should hold any upside. Support is at 1.5102 ahead of 1.5027”.