3 Jul 2015
GBP/USD: looking for a retest of 1.5550 – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, sees GBP/USD risks tilted to the downside and looks for a retest of 1.5550 in the near-term.
Key Quotes
“GBP is soft, retracing its modest and short-lived construction PMI-driven rally (58.1 vs. 56.5 exp. & 55.9 prev.) as market participants look to the U.S. employment release and its implications for relative policy.”
“The balance of GBP risk lies to the downside, as we note the recent break below the 21 day MA (1.5630).”
“Technicals are broadly bearish, and the 9 day MA (1.5713) has acted as a notable level of resistance. We look to a near term test of 1.5550.”
Key Quotes
“GBP is soft, retracing its modest and short-lived construction PMI-driven rally (58.1 vs. 56.5 exp. & 55.9 prev.) as market participants look to the U.S. employment release and its implications for relative policy.”
“The balance of GBP risk lies to the downside, as we note the recent break below the 21 day MA (1.5630).”
“Technicals are broadly bearish, and the 9 day MA (1.5713) has acted as a notable level of resistance. We look to a near term test of 1.5550.”