7 Jan 2015
GBP/USD likely to test 1.5240 before Friday's US NFP report – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, anticipates the GBP/USD pair to likely see a corrective rally towards 1.5225-1.5240 levels with the daily RSI oversold, and further estimates 10yr UK Gilt Yields to rise towards 2% in the short term.
Key Quotes
“The GBP/USD pair has recovered slightly from the 17-month low of 1.5106 hit earlier today, tracking slight recovery in the Crude prices and the strength in the UK equity markets.”
“The 10-year Gilt yields in the UK are also up 5.7 basis points at 1.622%. Meanwhile, the US 10-year Treasury yield is up 1 basis points at 1.973%.”
“The 10-yr UK Gilt yield is rising from the support located at 1.610% (May 2013 low). The gains may be extended to 1.864% and 2.00% in short-term.”
“On the other hand, the relative recovery in the US Treasury yields may be weak ahead of NFP data owing to a safe haven demand ahead of the Greek vote scheduled later this month. Furthermore, the hawkish fed policy statement has already been priced-in. Hence, minutes may not result in significant hardening of Treasury yields.”
“The GBP/USD pair is oversold on the daily charts, while the hourly chart shows formation of the bullish Price-RSI divergence.”
“Hence, the pair is more likely to see a corrective rally towards 1.5225 (5-DMA)-1.5240 levels”
Key Quotes
“The GBP/USD pair has recovered slightly from the 17-month low of 1.5106 hit earlier today, tracking slight recovery in the Crude prices and the strength in the UK equity markets.”
“The 10-year Gilt yields in the UK are also up 5.7 basis points at 1.622%. Meanwhile, the US 10-year Treasury yield is up 1 basis points at 1.973%.”
“The 10-yr UK Gilt yield is rising from the support located at 1.610% (May 2013 low). The gains may be extended to 1.864% and 2.00% in short-term.”
“On the other hand, the relative recovery in the US Treasury yields may be weak ahead of NFP data owing to a safe haven demand ahead of the Greek vote scheduled later this month. Furthermore, the hawkish fed policy statement has already been priced-in. Hence, minutes may not result in significant hardening of Treasury yields.”
“The GBP/USD pair is oversold on the daily charts, while the hourly chart shows formation of the bullish Price-RSI divergence.”
“Hence, the pair is more likely to see a corrective rally towards 1.5225 (5-DMA)-1.5240 levels”