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26 Apr 2013
Forex: GBP/USD bouncing off 1.5420
FXstreet.com (Barcelona) - The pound has found buying interest in the boundaries of 1.5420 on Friday, after selling pressure dragged the cross from session highs around 1.5470.
According to Nick Bate, UK Economist at BofAML, the recent decline in commodity prices and wage growth plus the dovish sound of MPC’s Weale in recent comments would tilt the risks towards further easing by the BoE in its next gathering. However, “In our view, the Q1 GDP data and the expansion of the FLS augment the view that the BoE will leave QE on hold at the May meeting”, Bate concluded.
At the moment, the cross is up 0.19% at 1.5463 and a break above 1.5480 (high Apr.25) would clear the way to 1.5544 (high Feb.14) and finally 1.5550 (high Feb.15).
On the flip side, support levels align at 1.5309 (MA10d) would expose 1.5284 (MA21d) and then 1.5265 (low Apr.25).
According to Nick Bate, UK Economist at BofAML, the recent decline in commodity prices and wage growth plus the dovish sound of MPC’s Weale in recent comments would tilt the risks towards further easing by the BoE in its next gathering. However, “In our view, the Q1 GDP data and the expansion of the FLS augment the view that the BoE will leave QE on hold at the May meeting”, Bate concluded.
At the moment, the cross is up 0.19% at 1.5463 and a break above 1.5480 (high Apr.25) would clear the way to 1.5544 (high Feb.14) and finally 1.5550 (high Feb.15).
On the flip side, support levels align at 1.5309 (MA10d) would expose 1.5284 (MA21d) and then 1.5265 (low Apr.25).