6 Jun 2013
GBP/USD in highs around 1.5460
FXstreet.com (Barcelona) - The sterling remains buoyant on Thursday, pushing the pair to fresh 4-week highs in the vicinity of 1.5460 ahead of the BoE MPC meeting.
“The MPC is likely to be in “caretaker mode” at present given the impending handover of authority and, in that vein, given the fact that excessively weak or strong levels of the GBP could potentially make that transition less smooth. Along these lines, recent dataflow and the Bank’s fair bit of dependence on the outcomes from FLS argue for a GBP level that is neither overly reflationary nor overly deflationary at this stage”, assessed Stephen Gallo, Strategist at BMO.
GBP/USD is now advancing 0.30% at 1.5453 with the next hurdle at 1.5466 (76.4% of 1.5607-1.5008) followed by 1.5471 (low May 8) and then 1.5500 (psychological level). On the downside, a breach of 1.5384 (low Jun.6) would target 1.5320 (MA30d) and then 1.5290 (low Jun.5).
“The MPC is likely to be in “caretaker mode” at present given the impending handover of authority and, in that vein, given the fact that excessively weak or strong levels of the GBP could potentially make that transition less smooth. Along these lines, recent dataflow and the Bank’s fair bit of dependence on the outcomes from FLS argue for a GBP level that is neither overly reflationary nor overly deflationary at this stage”, assessed Stephen Gallo, Strategist at BMO.
GBP/USD is now advancing 0.30% at 1.5453 with the next hurdle at 1.5466 (76.4% of 1.5607-1.5008) followed by 1.5471 (low May 8) and then 1.5500 (psychological level). On the downside, a breach of 1.5384 (low Jun.6) would target 1.5320 (MA30d) and then 1.5290 (low Jun.5).