3 Feb 2015
GBP/USD could face further consolidation – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, sellers could find a good opportunity to turn up around 0.77-0.78 in EUR/GBP.
Key Quotes
“Somewhat sceptical that EUR/GBP can continue to trade heavily as the UK general election slowly shifts onto the radar. Shorts will find better value into 0.77-0.78”.
“Positive growth and long term valuation signals for GBP continue to duke it out with a poor current account momentum signal. For the time being the negatives outweigh the positives”.
“Recent decline has traded to within 1% of our medium term target (2013 lows at 1.4810/40). Price again consolidated below 1.5250/1.5350 last week and this resistance remains firm. A daily close below 1.4950/80 will imply renewed weakness, however 2013 lows at 1.4810/40 should be tough to break in the coming weeks. Further consolidation”.
Key Quotes
“Somewhat sceptical that EUR/GBP can continue to trade heavily as the UK general election slowly shifts onto the radar. Shorts will find better value into 0.77-0.78”.
“Positive growth and long term valuation signals for GBP continue to duke it out with a poor current account momentum signal. For the time being the negatives outweigh the positives”.
“Recent decline has traded to within 1% of our medium term target (2013 lows at 1.4810/40). Price again consolidated below 1.5250/1.5350 last week and this resistance remains firm. A daily close below 1.4950/80 will imply renewed weakness, however 2013 lows at 1.4810/40 should be tough to break in the coming weeks. Further consolidation”.