Back
2 May 2013
Forex Flash: What’s the outlook for the GBP/USD? – RBS. UBS and Commerzbank
FXstreet.com (Barcelona) - After hitting fresh multi-week highs in the vicinity of 1.5610 on Wednesday, the sterling is now trading back to the 1.5560/65 region. Better-than-expected readings from the manufacturing PMI bolstered the up-move, albeit losing momentum afterwards.
“With the global grab for yield ongoing in light of the Fed and BoJ policy actions, asset markets remain buoyant and hence can provide some further support for GBP/USD. However we remain sceptical how far GBP/USD can push higher given the weak UK fundamental backdrop”, assessed Melinda Burguess, FX Strategist at RBS.
On the bullish side, Syed M.Mohi-uddin a UBS commented, “The pair posts new recovery high and tested the critical resistance at 1.5606, a closing break above this would open 1.5689. Support is at 1.5468”.
In the meantime, the long-term target for Commerzbank remains at 1.4853 ahead of 1.4229, although in the wake of yesterday’s bull run above 1.5600 Karen Jones, Head of FICC Technical Analysis at the German lender suggested, “We favour failure here. However the intraday charts are giving conflicting signals and above 1.5603 we would allow for one more push higher to 1.5761/82 (200 day ma and 61.8% retracement, where we would expect to see failure)”.
“With the global grab for yield ongoing in light of the Fed and BoJ policy actions, asset markets remain buoyant and hence can provide some further support for GBP/USD. However we remain sceptical how far GBP/USD can push higher given the weak UK fundamental backdrop”, assessed Melinda Burguess, FX Strategist at RBS.
On the bullish side, Syed M.Mohi-uddin a UBS commented, “The pair posts new recovery high and tested the critical resistance at 1.5606, a closing break above this would open 1.5689. Support is at 1.5468”.
In the meantime, the long-term target for Commerzbank remains at 1.4853 ahead of 1.4229, although in the wake of yesterday’s bull run above 1.5600 Karen Jones, Head of FICC Technical Analysis at the German lender suggested, “We favour failure here. However the intraday charts are giving conflicting signals and above 1.5603 we would allow for one more push higher to 1.5761/82 (200 day ma and 61.8% retracement, where we would expect to see failure)”.