GBP/USD: Upside should be limited to the 1.4650 - 1.4800 region - Lloyds

Analysts from Lloyds Bank pointed out that there is room for the upside in the GBP/USD pair, but it should still be muted to recent range highs.

Key Quotes:

“Expectations are low for a decent industrial production number this morning, so there is room for upside surprise. However, the upside should still be muted to recent range highs in the 1.4650-1.4800 region. Interim support lies at 1.4330-1.4290, a break of which would risk a move down to the broader range lows in the 1.41-1.40 region.”

“Medium-term we still believe the market should remain in a range between 1.4050/1.3980 (1.35 key below there) and the 1.48-1.4950 region. A move up through 1.50 is needed to suggest the 30-year support in the 1.40-1.35 has again held and technical analysis would look for a gradual move back towards the 1.60/1.65 range over the longer term.”