13 Jan 2015
GBP/USD might test 2013 lows of 1.4810/40 – Westpac
FXStreet (Barcelona) - According to Westpac, technicals warn that GBP/USD might consolidate in the coming 1-2 weeks before heading lower to test the 2013 lows of 1.4810/40.
Key Quotes
“GBP’s sell-off is beginning to look overdone. Even allowing for the cooling in both growth momentum and BoE rate expectations EUR/GBP shorts are beginning to look appealing again given the near certain prospect of ECB sovereign QE and the return of the return of Eurozone peripheral political risks around the Greek election. Surely the risks of a Syriza-led Greek government will prove to be more upsetting for markets than political uncertainty around Cameron’s re-election chances?”
“Our growth signal remains constructive on GBP but that is only a tiny offset to a bunch of negative signals including total yield, current account momentum and logit probability.”
“A bullish ST price pattern completed on Friday coincided with a positive shift in ST momentum. These factors warn of a period of consolidation in the coming 1-2 weeks, ahead of a test of the 2013 lows at 1.4810/40.”
Key Quotes
“GBP’s sell-off is beginning to look overdone. Even allowing for the cooling in both growth momentum and BoE rate expectations EUR/GBP shorts are beginning to look appealing again given the near certain prospect of ECB sovereign QE and the return of the return of Eurozone peripheral political risks around the Greek election. Surely the risks of a Syriza-led Greek government will prove to be more upsetting for markets than political uncertainty around Cameron’s re-election chances?”
“Our growth signal remains constructive on GBP but that is only a tiny offset to a bunch of negative signals including total yield, current account momentum and logit probability.”
“A bullish ST price pattern completed on Friday coincided with a positive shift in ST momentum. These factors warn of a period of consolidation in the coming 1-2 weeks, ahead of a test of the 2013 lows at 1.4810/40.”