15 Jul 2015
GBP/USD bullish near term – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, sees risks for further upside for GBP/USD in the near horizon.
Key Quotes
“GBP remains close to the upper end of its two week range, its recent rally driven by a shift in tone from policymakers at the BoE including Gov. Carney and MPC member Miles”.
“BoE policy expectations have firmed, recovering from their recent decline to price a roughly 65% chance of a 25bpt rate hike over the next 12 months”.
“Near term risk for GBP lies with U.S. events and releases ahead of the July 22nd BoE MPC minutes’ release”.
“RSI is above 50 and MACD is close to signaling a bullish turn. Potential for resistance at 21 day MA 1.5651. Looking for near term test of 1.5700, followed by 1.5750. Failure shifts focus toward 50 day MA at 1.5553”.
Key Quotes
“GBP remains close to the upper end of its two week range, its recent rally driven by a shift in tone from policymakers at the BoE including Gov. Carney and MPC member Miles”.
“BoE policy expectations have firmed, recovering from their recent decline to price a roughly 65% chance of a 25bpt rate hike over the next 12 months”.
“Near term risk for GBP lies with U.S. events and releases ahead of the July 22nd BoE MPC minutes’ release”.
“RSI is above 50 and MACD is close to signaling a bullish turn. Potential for resistance at 21 day MA 1.5651. Looking for near term test of 1.5700, followed by 1.5750. Failure shifts focus toward 50 day MA at 1.5553”.