GBP/USD well supported around 1.2080 – Westpac

In opinion of Strategists at Westpac, Cable appears well supported around the 1.2080 region.

Key Quotes

“The BoE should provide more insights of what the longer term impacts of what Brexit may be within its Inflation Report”.

“However, recently improved data should allow the MPC to remain on hold, whilst maintaining an easing bias to accommodate for what Brexit may mean”.

“A base appears to have formed in the 1.2080 area but this should merely allow for shallow consolidation rather than a sharp retracement squeeze of the Brexit fall”.

“A spike towards 1.2400-10 is possible, but resistance in the 1.2270’s may cap GBP and so maintain the broader downside bias for a slide towards the 1.18-1.20 attraction zone”.