27 Apr 2015
GBP/USD: long for 1.5270 – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team expects the FOMC statement to be on the dovish side and push GBP/USD higher, targeting 1.5270 levels for the pair.
Key Quotes
“The volatility on the GBP/USD is likely to increase further as we approach the 7 May general election. Polls show the governing Conservative and opposition Labour neck and neck, making a 'hung parliament' likely, in which no single party commands a majority.”
“UK first-quarter GDP data will be released on Tuesday. Growth is forecast to have moderated in the first quarter, slowing to 0.5% qoq from 0.6% qoq in the fourth quarter. Our forecast is in line with the market consensus, but we see a risk of the below-expectations reading.”
“We stay long on the GBP/USD as we expect dovish FOMC statement on Wednesday, but the GBP will be probably outperformed by the EUR due to election risks and possible weaker GDP growth data tomorrow. That is why we stay also EUR/USD long.”
“Resistance: 1.5190 (hourly high Apr 27), 1.5257 (high Mar 6), 1.5270 (high Mar 5)”
“Support: 1.5051 (55-dma), 1.5029 (low Apr 24), 1.4961 (low Apr 23)”
Key Quotes
“The volatility on the GBP/USD is likely to increase further as we approach the 7 May general election. Polls show the governing Conservative and opposition Labour neck and neck, making a 'hung parliament' likely, in which no single party commands a majority.”
“UK first-quarter GDP data will be released on Tuesday. Growth is forecast to have moderated in the first quarter, slowing to 0.5% qoq from 0.6% qoq in the fourth quarter. Our forecast is in line with the market consensus, but we see a risk of the below-expectations reading.”
“We stay long on the GBP/USD as we expect dovish FOMC statement on Wednesday, but the GBP will be probably outperformed by the EUR due to election risks and possible weaker GDP growth data tomorrow. That is why we stay also EUR/USD long.”
“Resistance: 1.5190 (hourly high Apr 27), 1.5257 (high Mar 6), 1.5270 (high Mar 5)”
“Support: 1.5051 (55-dma), 1.5029 (low Apr 24), 1.4961 (low Apr 23)”