12 Feb 2015
GBP/USD could break below 1.52 – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/USD pair is likely to break below 1.52 if BOE lowers its inflation forecasts more than expected, with technicals supporting the move lower.
Key Quotes
“The GBP/USD pair failed to sustain gains above the 50-DMA in the previous session for the second time in the current month.”
“The British Pound turned out to be a major beneficiary of the Greek-led uncertainty, as cross demand rose, taking the GBP/USD pair to a high of 1.5298 levels.”
“Markets also priced-in a hawkish Bank of England (BOE) Quarterly Inflation Report (QIR). Moreover, the BOE is expected to slash its inflation forecasts and express the possibility of inflation falling into a negative territory.”
“However, it is widely expected to stress the positive impact of falling energy prices on consumption.”
“A move to 1.5298 levels in the previous session indicates that markets could have priced-in a slightly hawkish QIR.”
“Moroever, markets could be in for a surprise if the BOE cites risk to growth from falling inflation and reduces inflation forecasts more than expected. In a such a case, the pair could fall below 1.5198 (38.2% retracement level of 400-pip rally (1.4949-1.5350)).”
“The RSI on the hourly and 4-hour chart has turned bearish, indicating a high possibility of a break below 1.5198.”
“The immediate losses are likely to be capped at 1.5150 (50% retracement).”
“On the other hand, buying interest could be seen above 1.5273 (50-DMA) level, although immediate gains may be capped at 1.53 levels. “
Key Quotes
“The GBP/USD pair failed to sustain gains above the 50-DMA in the previous session for the second time in the current month.”
“The British Pound turned out to be a major beneficiary of the Greek-led uncertainty, as cross demand rose, taking the GBP/USD pair to a high of 1.5298 levels.”
“Markets also priced-in a hawkish Bank of England (BOE) Quarterly Inflation Report (QIR). Moreover, the BOE is expected to slash its inflation forecasts and express the possibility of inflation falling into a negative territory.”
“However, it is widely expected to stress the positive impact of falling energy prices on consumption.”
“A move to 1.5298 levels in the previous session indicates that markets could have priced-in a slightly hawkish QIR.”
“Moroever, markets could be in for a surprise if the BOE cites risk to growth from falling inflation and reduces inflation forecasts more than expected. In a such a case, the pair could fall below 1.5198 (38.2% retracement level of 400-pip rally (1.4949-1.5350)).”
“The RSI on the hourly and 4-hour chart has turned bearish, indicating a high possibility of a break below 1.5198.”
“The immediate losses are likely to be capped at 1.5150 (50% retracement).”
“On the other hand, buying interest could be seen above 1.5273 (50-DMA) level, although immediate gains may be capped at 1.53 levels. “