27 May 2013
Sterling advances remain capped below 1.5150
FXstreet.com (Barcelona) - The sterling finished the week slightly lower, although it did bounce from previous lows set down near 1.5010 to end the week down 41 pips at 1.5126. The main catalyst for the decline was continued weakness in UK economic data, particularly the retail sales print which came well below expectations at -1.3% actual vs. 0.0% expected.
According to analysts at Rabobank, “with the overall economy continuing on a lacklustre path the market will be on edge for further stimulus from the BoE once governor-designate, Mark Carney, takes the reins in early July. Better signs in the housing market complicates the calculus, though, because it is one of the main interest rate sensitive sectors. We expect further QE via an increase to the BoE’s Asset Purchase Program in August.”
According to Val Bednarik of FXStreet.com, “Despite its latest recovery, the GBP/USD is still struggling to overcome the 1.5130 area, 61.8% retracement of its latest daily bullish run. The hourly chart shows price above 20 SMA and indicators heading higher in positive territory, yet with no actual strength at the time being. In the 4 hours chart price has managed to overcome a still bearish 20 SMA while indicators head higher above their midlines, supporting an upward continuation. Still with low volumes around and with no follow trough above the resistance level, there are no technical confirmations of such advance.”
According to analysts at Rabobank, “with the overall economy continuing on a lacklustre path the market will be on edge for further stimulus from the BoE once governor-designate, Mark Carney, takes the reins in early July. Better signs in the housing market complicates the calculus, though, because it is one of the main interest rate sensitive sectors. We expect further QE via an increase to the BoE’s Asset Purchase Program in August.”
According to Val Bednarik of FXStreet.com, “Despite its latest recovery, the GBP/USD is still struggling to overcome the 1.5130 area, 61.8% retracement of its latest daily bullish run. The hourly chart shows price above 20 SMA and indicators heading higher in positive territory, yet with no actual strength at the time being. In the 4 hours chart price has managed to overcome a still bearish 20 SMA while indicators head higher above their midlines, supporting an upward continuation. Still with low volumes around and with no follow trough above the resistance level, there are no technical confirmations of such advance.”