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Forex: GBP/USD clings to 1.5300

The sterling remains unable to gather any traction to leave the bearishness behind, intensified after today’s dovish tone from the BoE minutes and the close voting pattern regarding an increase of the asset purchase programme.

In the opinion of Jacqui Douglas, Senior Global Strategist at TD Securities, the UK releases in the upcoming weeks would be key ahead of the next BoE gathering. “With the foreign data generally looking more supportive, we think that some of the positive tone there should start trickling through to the UK, allowing the BoE to sit back and see how the economy fares on its own for a while, and perhaps work behind the stage on somehow expanding or complementing the FLS program”, concludes the expert.

As of writing, GBP/USD is down 0.82% at 1.5297 facing the next support at 1.5269 (low Jun.1) ahead of 1.5234 (low 2012 Jan.13) and finally 1.5190 (61.8% of 1.4228-1.6747).
On the upside, a break above 1.5452 (hourly high Feb.20) would bring 1.5544 (high Feb.14) and then 1.5550 (high Feb.15).

Forex Flash: IMM data reveals abundance of EUR longs – UBS

According to the UBS Analyst Team, “In terms of positioning we note that speculative investors may now be long the euro, as suggested by IMM data as well as plenty of anecdotal evidence. Overall however, we continue to argue that investors remain structurally short the euro and the Eurozone. What this means, in our view, is that the risk of short-term downward corrections is high, particularly if any of the political issues mentioned in this note were to surprise negatively.”
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Brown Brothers Harriman analysts note that GBP has replaced JPY as the focal point for the FX market as it hits fresh multi month lows.
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