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8 May 2015
GBP/USD upside limited
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5451 with a high of 1.5525 and a low of 1.5353.
Sterling has been a big bid on the back of the election result having removed worst case fears over a fragmented, multi-party coalition government. 1.5550 looks promising being the February high and the 38.2% retracement of the move down from the July 2014 peak. However, the underlying policy mix is one of tight fiscal/loose monetary policy, so from a domestic perspective sterling’s upside against the USD looks limited, explained by analysts at ANZ. "However, there will be uncertainty associated with an EU referendum and possible renewed pressure for a Scottish referendum on independence."
Technically, Karen Jones, chief analyst at Commerzbank explained that a close above the 1.5570 resistance will introduce scope to the 1.5785 December peak and 1.5855/80, the November 2013 low and 50 % retracement. "Currently we are unable to rule out a move towards the 1.5898/1.5964 55 and 200 week moving averages."
Sterling has been a big bid on the back of the election result having removed worst case fears over a fragmented, multi-party coalition government. 1.5550 looks promising being the February high and the 38.2% retracement of the move down from the July 2014 peak. However, the underlying policy mix is one of tight fiscal/loose monetary policy, so from a domestic perspective sterling’s upside against the USD looks limited, explained by analysts at ANZ. "However, there will be uncertainty associated with an EU referendum and possible renewed pressure for a Scottish referendum on independence."
Technically, Karen Jones, chief analyst at Commerzbank explained that a close above the 1.5570 resistance will introduce scope to the 1.5785 December peak and 1.5855/80, the November 2013 low and 50 % retracement. "Currently we are unable to rule out a move towards the 1.5898/1.5964 55 and 200 week moving averages."