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13 Mar 2013
Forex: GBP/USD hovering over weekly highs, around 1.4935/40
After dipping to levels last seen in mid 2010 in the area of 1.4830/35 on Tuesday, the sterling managed to pick up pace and climb to weekly highs overnight around 1.4950, leaving behind the miserable data from the UK industrial sector.
“Chancellor of the Exchequer George Osborne will present his budget next week and reports have emerged that the BoE’s remit could be changed to allow additional QE despite high-running inflation. Should this occur, the next leg lower in Gilt yields could be around the corner, which could put further downside pressure on the Sterling. We still find that GBPUSD should fall to 1.4200 by early-3Q’13”, explained Christopher Vecchio, Currency Analyst at DailyFX.
As of writing, the pair is up 0.20% at 1.4928 with the next resistance at 1.5047 (high Mar.8) followed by 1.5063 (MA10d) and then 1.5083 (high Mar.7).
On the flip side, a breakdown of 1.4803 (low Jun.23 2010) aims for 1.4798 (Lower Bollinger) and finally 1.4688 (low Jun.22 2010).
“Chancellor of the Exchequer George Osborne will present his budget next week and reports have emerged that the BoE’s remit could be changed to allow additional QE despite high-running inflation. Should this occur, the next leg lower in Gilt yields could be around the corner, which could put further downside pressure on the Sterling. We still find that GBPUSD should fall to 1.4200 by early-3Q’13”, explained Christopher Vecchio, Currency Analyst at DailyFX.
As of writing, the pair is up 0.20% at 1.4928 with the next resistance at 1.5047 (high Mar.8) followed by 1.5063 (MA10d) and then 1.5083 (high Mar.7).
On the flip side, a breakdown of 1.4803 (low Jun.23 2010) aims for 1.4798 (Lower Bollinger) and finally 1.4688 (low Jun.22 2010).