18 Jun 2015
GBP/USD could find strong resistance at 1.60 – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior Currency Strategist at Rabobank, expects the pair’s upside to find tough resistance around the psychological handle at 1.6000.
Key Quotes
“Cable’s recent gains have not been in tune with our view that the currency pair will soften into the second half of this year”.
“This view is built on the assumption that the Fed will hike rates in December, well ahead of the BoE and that austerity and EU membership uncertainty could weigh on the pound. We still adhere to this view”.
“While Greek default fear will likely keep cable well supported near-term, we would expect 1.60 to offer strong psychological resistance. We maintain our view that EUR/GBP will push towards 0.70 on a 6 mth view”.
Key Quotes
“Cable’s recent gains have not been in tune with our view that the currency pair will soften into the second half of this year”.
“This view is built on the assumption that the Fed will hike rates in December, well ahead of the BoE and that austerity and EU membership uncertainty could weigh on the pound. We still adhere to this view”.
“While Greek default fear will likely keep cable well supported near-term, we would expect 1.60 to offer strong psychological resistance. We maintain our view that EUR/GBP will push towards 0.70 on a 6 mth view”.