Feb 20, 2013
Forex Flash: GBP/AUD to stabilize after 1.4925-1.5050 target hit - Westpac
GBP/AUD has hit Westpac 1.4925-1.5050 short target and as FX strategist Sean Callow notes, "is probably due for at least stabilization, perhaps a push to 1.5150 so long as the RBA continues to threaten further easing and with sterling perhaps a little oversold." Only a break above 1.54, in view of Sean, "would probably require the RBA to indicate it will cut rates further than already priced in." In order to extend the bearish bias and make a push to Aug12 lows around 1.47, "we are likely to need to see another round of BoE QE, which is not our base case" Sean adds.