13 May 2015
GBP/USD: technical indicators warrant caution – Scotiabank
FXStreet (Barcelona) - Focus for GBP/USD remains on the 200DMA at 1.5618 as technical indicators suggest maintaining a cautious approach on the pair, notes Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank.
Key Quotes
“GBP is flat, having retraced its employment-driven gain to a fresh YTD high near 1.5750 in response to the BoE’s quarterly Inflation Report. The BoE cut expectations for growth both this year and next and highlighted the ongoing drag of post-crisis headwinds while reiterating its expectation for a gradual policy normalization process. Inflation probabilities were left largely unchanged, providing little change to rate expectations via OIS.”
“GBPUSD short-term technicals: bullish—momentum indicators hint to upside however emerging divergence in RSI warrants caution. Formation of a doji candle highlights uncertainty, and focus remains on the 200 day MA at 1.5618.”
Key Quotes
“GBP is flat, having retraced its employment-driven gain to a fresh YTD high near 1.5750 in response to the BoE’s quarterly Inflation Report. The BoE cut expectations for growth both this year and next and highlighted the ongoing drag of post-crisis headwinds while reiterating its expectation for a gradual policy normalization process. Inflation probabilities were left largely unchanged, providing little change to rate expectations via OIS.”
“GBPUSD short-term technicals: bullish—momentum indicators hint to upside however emerging divergence in RSI warrants caution. Formation of a doji candle highlights uncertainty, and focus remains on the 200 day MA at 1.5618.”