GBP/USD
weakens on Wednesday after touching 1.5640 during the Asian session.
Most analysts expect the sterling to continue a downward movement: in
their view, the BoE talks on policy easing and increased May public
sector net borrowing will weigh on the sterling.
On Tuesday the BoE governor Mervin King warned that Britain isn't
even half way through the crisis and said the nation probably won't
recover for at least five years. King added that the rate cuts are less
effective stimulus for the economy than the QE. Specialists at TD
Securities expect a new monetary easing in July.
Commerzbank analysts remain bearish on GBP/USD: in their view, in a
short-term a slide to 1.5407 (Jun-8 low) is likely. Further decline
would lead to 1.5269/35 (recent low and 2012 low). Analysts at RBS also
recommend going short on GBP/USD, targeting to 1.5050 and with a stop at
1.6075.
Resistance:
1.5660 (23.6% Fibonacci retracement from June rally);
1.5734 (June 21 maximum);
1.5747 (200-day MA);
1.5778 (June 20 maximum).
Support:
1.5583 (38.2% Fibonacci retracement);
1.5538 (June 25 minimum);
1.5523 (50% Fibonacci retracement);
1.5463 (61.8% Fibonacci retracement).
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