27 Jun 2013
Flash: Pressured Cable - OCBC Bank
FXstreet.com (London) - OCBC BankEmmanuel Ng, strategist at OCBC Bank said that a supported dollar tone, coupled with a fading EUR, as well as cautionary (dovish) comments from the BOE’s Ticker and Miles, pressured the GBP/USD lower.
In addition, he said, the latest BOE Financial stability Report also warned against firmer rates. He also noted that the breach of the 55-day MA (1.5380) was opening up to give a further tailwind south for the pair. With a test of the 1.5300 floor looking inevitable. It has since broken this support on todays releases in the form of a worse GDP number and worse Current Account and he says beyond this support, the next waypoint is expected around 1.5220.
In addition, he said, the latest BOE Financial stability Report also warned against firmer rates. He also noted that the breach of the 55-day MA (1.5380) was opening up to give a further tailwind south for the pair. With a test of the 1.5300 floor looking inevitable. It has since broken this support on todays releases in the form of a worse GDP number and worse Current Account and he says beyond this support, the next waypoint is expected around 1.5220.