GBP/USD: 200 dma could set the cap – Scotiabank
Analysts at Scotiabank explained that Sterling remains relatively firm against the USD, extending this week’s rally from the mid 1.44 area.
Key Quotes:
“UK Q1 GDP rose 0.4% q/q, in line with expectations (driven by consumption, with exports a drag on growth and business investment weak). GBP/USD 1m volatility has surged to the highest in six years, with the 1m tenor now capturing the risk around the June 23rd referendum.
“GBP/USD short-term technicals: neutral/bearish—Cable’s rally this week has taken the pound to the highest level versus the USD since the start of the month but the upper 1.47 area still looks a block on gains at this point.
Intraday price action looks weak, in fact, and appears to be signaling an interim peak for the GBP (200-day MA at 1.4772 today). Loss of support at 1.4660 may see losses extend.”
Source:: FX Street
