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12 Mar 2013
Forex Flash: What does the GBP/USD has to offer? – UBS, ANZ, Commerzvank and Rabobank
The sterling is trading in the negative ground once again, as any upside attempt remains capped by the key resistance at 1.4900 so far. Horrible UK data from the industrial and manufacturing production this early morning have accentuated the bearishness surrounding GBP, dragging the cross to multi-year lows in the proximity of 1.4830
G.Yu and G.Berry, Straegists at the Swiss lender UBS, remain bearish on the sterling, arguing, “The pair extends weakness posting a new corrective low. Support is at 1.4687 ahead of 1.4347. Resistance is at 1.4993 ahead of 1.5083”.
In addition, Brian Martin, European Strategist at AZN, comments “Sterling’s weakness on the foreign exchanges remains in tact as an absence of fresh initiatives from the Bank of England and the lack of room to ease fiscal policy leave much onus on a weaker pound to help stimulate growth”. At the same time, the expert recommends, “using short squeezes as opportunities to establish shorts”.
Karen Jones, Head of FICC Technnical Analysis at Commerzbank, suggests the cross “maintained downside pressure last week and it is on course for 1.4853, the 61.8% retracement of the 2009 move. It is possible that we will see some profit taking here, however longer term we look for losses to 1.4259/29, the 2010 low”.
Jane Foley, Currency Strategist at Rabobank, remarks that today’s poor data from the industrial sector added extra pressure to the BoE regarding further easing. In the same direction the analyst referred to news pointing to a re-write of the FLS directed to facilitate liquidity to the small business sector. “Whether it is more QE or a re-worked FLS, sterling remains vulnerable and we continue to favor selling into any rallies”, recommends Foley.
G.Yu and G.Berry, Straegists at the Swiss lender UBS, remain bearish on the sterling, arguing, “The pair extends weakness posting a new corrective low. Support is at 1.4687 ahead of 1.4347. Resistance is at 1.4993 ahead of 1.5083”.
In addition, Brian Martin, European Strategist at AZN, comments “Sterling’s weakness on the foreign exchanges remains in tact as an absence of fresh initiatives from the Bank of England and the lack of room to ease fiscal policy leave much onus on a weaker pound to help stimulate growth”. At the same time, the expert recommends, “using short squeezes as opportunities to establish shorts”.
Karen Jones, Head of FICC Technnical Analysis at Commerzbank, suggests the cross “maintained downside pressure last week and it is on course for 1.4853, the 61.8% retracement of the 2009 move. It is possible that we will see some profit taking here, however longer term we look for losses to 1.4259/29, the 2010 low”.
Jane Foley, Currency Strategist at Rabobank, remarks that today’s poor data from the industrial sector added extra pressure to the BoE regarding further easing. In the same direction the analyst referred to news pointing to a re-write of the FLS directed to facilitate liquidity to the small business sector. “Whether it is more QE or a re-worked FLS, sterling remains vulnerable and we continue to favor selling into any rallies”, recommends Foley.