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1 Mar 2013
Forex: GBP/USD consolidating below 1.5050
The sterling keeps the bearish mood below the 1.5050 level on Friday, dragged lower after softer-than-expected data from the UK manufacturing PMI print.
“The UK authorities have a de facto weak pound policy and will be all the more committed to it now. The economy is flirting with a return to recession, monetary policy is out of juice, and GBP/USD is heading for an imminent break of 1.50. After that, a shift to a test of $1.40 will follow on a 6-month time horizon”, argued Kit Juckes, analyst at Societe Generale.
GBP/USD is losing 0.92% at 1.5022 facing the next support at the psychological level at 1.5000 followed by 1.4949 (low Jul.12 2010) and then 1.4873 (low Jul.1 2010).
On the upside, a breakout of 1.5173 (hourly high Mar.1) would expose 1.5223 (high Feb.28) and then 1.5235 (MA10d).
“The UK authorities have a de facto weak pound policy and will be all the more committed to it now. The economy is flirting with a return to recession, monetary policy is out of juice, and GBP/USD is heading for an imminent break of 1.50. After that, a shift to a test of $1.40 will follow on a 6-month time horizon”, argued Kit Juckes, analyst at Societe Generale.
GBP/USD is losing 0.92% at 1.5022 facing the next support at the psychological level at 1.5000 followed by 1.4949 (low Jul.12 2010) and then 1.4873 (low Jul.1 2010).
On the upside, a breakout of 1.5173 (hourly high Mar.1) would expose 1.5223 (high Feb.28) and then 1.5235 (MA10d).