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14 May 2015
GBP/USD short-term technicals remain bullish – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that short-term technicals for GBP/USD remain bullish, with the next key upside level being at 1.5879.
Key Quotes
“GBP continues to climb, testing 1.5800 to reach levels last seen in November 2014. The key driver for GBP remains the broader USD trend, with a notable underperformance to EUR over the past two sessions on the back of a less hawkish-than-expected BoE.”
“Media comments from BoE Gov. Carney have centered on weak UK productivity, the referendum and its impact on business decision-making. The policy tone was maintained with a focus on ‘limited and gradual’ rate increases.”
“GBPUSD short-term technicals: bullish—fresh highs in spot are being confirmed by momentum indicators.”
“The next key upside level includes 1.5879 the 50% retracement level of the July 2014-April 2015 decline, followed by the 61.8% retracement at 1.6189. However we note that the RSI is well overbought at 74, a level that has only been reached four times over the past five years.”
Key Quotes
“GBP continues to climb, testing 1.5800 to reach levels last seen in November 2014. The key driver for GBP remains the broader USD trend, with a notable underperformance to EUR over the past two sessions on the back of a less hawkish-than-expected BoE.”
“Media comments from BoE Gov. Carney have centered on weak UK productivity, the referendum and its impact on business decision-making. The policy tone was maintained with a focus on ‘limited and gradual’ rate increases.”
“GBPUSD short-term technicals: bullish—fresh highs in spot are being confirmed by momentum indicators.”
“The next key upside level includes 1.5879 the 50% retracement level of the July 2014-April 2015 decline, followed by the 61.8% retracement at 1.6189. However we note that the RSI is well overbought at 74, a level that has only been reached four times over the past five years.”