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18 Feb 2013
Forex: GBP/USD in fresh lows around 1.5440/50
The sterling is intensifying its decline at the beginning of the trading week, testing levels last seen in July 2012 in the proximities of 1.5440/50
After dovish comments by M.King in last week’s speech after the inflation report, M.Mohi-uddi – Director of FX Strategy at UBS – argues that the pound is posed to suffer ahead of the higher inflation levels and a desired weaker exchange rate. “In our view the pound seems clearly at risk of following the yen and suffering the next large-scale devaluation for a major currency”, concluded the expert.
At the moment, the cross is retreating 0.31% at 1.5455 with the next support at 1.5414 (low Jul.13) ahead of 1.5393 (low Jul.12) and then 1.5375 (low Jun.6).
On the other hand, a break above 1.5544 (high Feb.14) would expose 1.5550 (high Feb.15) and finally 1.5614 (MA10d).
After dovish comments by M.King in last week’s speech after the inflation report, M.Mohi-uddi – Director of FX Strategy at UBS – argues that the pound is posed to suffer ahead of the higher inflation levels and a desired weaker exchange rate. “In our view the pound seems clearly at risk of following the yen and suffering the next large-scale devaluation for a major currency”, concluded the expert.
At the moment, the cross is retreating 0.31% at 1.5455 with the next support at 1.5414 (low Jul.13) ahead of 1.5393 (low Jul.12) and then 1.5375 (low Jun.6).
On the other hand, a break above 1.5544 (high Feb.14) would expose 1.5550 (high Feb.15) and finally 1.5614 (MA10d).