1 Jul 2013
Flash: What can we do with GBP/USD? – Commerzbank and RBS
Fxstreet.com (Edinburgh) - The sterling keeps the positive ground on Monday, propped up by the better-than-expected manufacturing PMI print during June, pushing the GBP/USD to the mid 1.52s after bottoming out near 1.5180. Important week for the pound, as the BoE will start today a new era under the command of M.Carney, who will hold its first MPC meeting on Thursday.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “We look for intraday rallies to remain capped by 1.5375/1.5440 for an immediate downside bias to be maintained. Key resistance remains the 1.5736/87 band – the recent high, the 61.8% retracement of this years move, plus the 200 week moving average”.
“Simply eyeballing a year-to-date chart of GBP/USD suggests that 1.50 - 1.52 is a buy zone for different types of investors. If this fails to hold and we start printing closes below 1.50, the outlook would be far more bearish, in our view”, suggested the FX research team at RBS.
In the opinion of Axel Rudolph, Senior Technical Analyst at Commerzbank, “We look for intraday rallies to remain capped by 1.5375/1.5440 for an immediate downside bias to be maintained. Key resistance remains the 1.5736/87 band – the recent high, the 61.8% retracement of this years move, plus the 200 week moving average”.
“Simply eyeballing a year-to-date chart of GBP/USD suggests that 1.50 - 1.52 is a buy zone for different types of investors. If this fails to hold and we start printing closes below 1.50, the outlook would be far more bearish, in our view”, suggested the FX research team at RBS.