3 Feb 2014
Flash: GBP/USD eyes on 1.6260 - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec is watching for a GBP/USD close below 1.6280 today for a sign of further downside ahead.
Key Quotes
"GBP/USD has remained somewhat subdued since Governor Carney spoke over a week ago, talking down the need for rate rises and implying that Sterling is too strong. UK GDP last week failed to rouse further enthusiasm coming out in line with consensus at 0.7%, and slightly below more optimistic economists’ forecasts of 0.8%. Overnight we had more disappointing Chinese data and subsequently GBP/USD opens in the low 1.64s."
"At this point a close through the key 1.6260 technical level could signify further downward movement in GBP/USD. The likelihood of this happening is strengthened by the Fed's decision last week to continue to taper it's QE program by a further 10b USD, helping to add to USD strength amidst jitters in equities and emerging markets."
Key Quotes
"GBP/USD has remained somewhat subdued since Governor Carney spoke over a week ago, talking down the need for rate rises and implying that Sterling is too strong. UK GDP last week failed to rouse further enthusiasm coming out in line with consensus at 0.7%, and slightly below more optimistic economists’ forecasts of 0.8%. Overnight we had more disappointing Chinese data and subsequently GBP/USD opens in the low 1.64s."
"At this point a close through the key 1.6260 technical level could signify further downward movement in GBP/USD. The likelihood of this happening is strengthened by the Fed's decision last week to continue to taper it's QE program by a further 10b USD, helping to add to USD strength amidst jitters in equities and emerging markets."