24 Jun 2014
GBP/USD: Testing key psychological levels - SocGen
FXStreet (Bali) - According to Kit Juckes, Head of FX Strategy at Societe Generale, the GBP/USD looks over-stretched on momentum indicators, suggesting a period of consolidation ahead.
Key Quotes
"The RSIs suggests that the pound is overdue a pause, and could spend some time consolidating around these levels. In 1996/1998, GBP/USD spent two years oscillating in a 1.60-1.70 range before heading down through 1.40 so there's a precedent for a range to establish itself."
"It's also true that GBP longs are pretty extreme by recent standards. CFTC data on futures positioning shows GBP longs at their highest levels since 2007, edging just above the levels that were seen before GBP/USD peaked at 1.67 in 2011."
Key Quotes
"The RSIs suggests that the pound is overdue a pause, and could spend some time consolidating around these levels. In 1996/1998, GBP/USD spent two years oscillating in a 1.60-1.70 range before heading down through 1.40 so there's a precedent for a range to establish itself."
"It's also true that GBP longs are pretty extreme by recent standards. CFTC data on futures positioning shows GBP longs at their highest levels since 2007, edging just above the levels that were seen before GBP/USD peaked at 1.67 in 2011."