14 Nov 2013
Flash: GBP/USD neutral to top heavy - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank feels that GBP/USD will stay neutral to top heavy in the near term with resistance expected around 1.6100.
Key Quotes
“The BOE Inflation Report presented a more optimistic set of forecasts (with Carney also describing the current environment as half full), with a potential for the unemployment rate to decline to 7.00% as early as 4Q 14 (in contrast to late 2016 previously).”
“However, the positive net impact of these forecast revisions were diluted by the BOE’s added caveat that this was not an automatic trigger and that higher interest rates would also be dependent on other factors such as labor market productivity and market expectations towards interest rates. On Wednesday, the reported unemployment rate also fell as expected to 7.6% for September from 7.7%.
“In the interim, we stay neutral/top heavy on the pair with resistance expected at 1.6100 and the 55-day MA (1.5983).”
Key Quotes
“The BOE Inflation Report presented a more optimistic set of forecasts (with Carney also describing the current environment as half full), with a potential for the unemployment rate to decline to 7.00% as early as 4Q 14 (in contrast to late 2016 previously).”
“However, the positive net impact of these forecast revisions were diluted by the BOE’s added caveat that this was not an automatic trigger and that higher interest rates would also be dependent on other factors such as labor market productivity and market expectations towards interest rates. On Wednesday, the reported unemployment rate also fell as expected to 7.6% for September from 7.7%.
“In the interim, we stay neutral/top heavy on the pair with resistance expected at 1.6100 and the 55-day MA (1.5983).”