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2 Apr 2013
Forex: GBP/USD testing 4-day lows
FXstreet.com (Barcelona) - The sterling is accelerating its descent on Tuesday, hovering over 1.5120/25 as risk aversion continues to grow bigger. Mixed data from the UK have also collaborated with the downside, after manufacturing PMI ticked higher to 48.3 although failed to convince investors and Mortgage Approvals fell to 51.65K in February from January’s 54.18K.
“GBP/USD has fallen back from last week’s rebound and GBP looks likely to remain hampered by a weak economy and its close ties with the Euro zone. In contrast, US cyclical out-performance should continue to be USD supportive… We would still look for opportunities to be short GBP/USD”, recommended Melinda Burguess, FX Strategist at RBS.
At the moment, the pair is retreating 0.66% at 1.5128 facing the immediate support at 1.5112 (low Mar.28) followed by 1.5094 (MA21d) and finally 1.50092 (low Mar.27).
On the flip side, a breakout of 1.5259 (hourly high Apr.2) would clear the way to 1.5280 (high Mar.25) en route to 1.5330 (high Feb.22).
“GBP/USD has fallen back from last week’s rebound and GBP looks likely to remain hampered by a weak economy and its close ties with the Euro zone. In contrast, US cyclical out-performance should continue to be USD supportive… We would still look for opportunities to be short GBP/USD”, recommended Melinda Burguess, FX Strategist at RBS.
At the moment, the pair is retreating 0.66% at 1.5128 facing the immediate support at 1.5112 (low Mar.28) followed by 1.5094 (MA21d) and finally 1.50092 (low Mar.27).
On the flip side, a breakout of 1.5259 (hourly high Apr.2) would clear the way to 1.5280 (high Mar.25) en route to 1.5330 (high Feb.22).