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22 May 2015
GBP/USD: technicals providing an early warning sign – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that GBP/USD trades weak post comments from BoE MPC member Shafik, while the turn in MACD provides an early warning sign for traders.
Key Quotes
“GBP is weak, underperforming ahead of the NA session in response to comments from BoE MPC member Shafik. The comments reiterated a neutral tone of patience, highlighting expectations of a gradual pace of hikes while also pushing back on expectations of balance sheet adjustment in the absence of a ‘materially higher’ policy rate.”
“GBPUSD short-term technicals: bullish-neutral—momentum indicators have softened with the turn in the MACD providing an early warning sign. Resistance over the past two sessions has been observed around 1.5700 with limited movement above the 9 day MA (1.5656).”
Key Quotes
“GBP is weak, underperforming ahead of the NA session in response to comments from BoE MPC member Shafik. The comments reiterated a neutral tone of patience, highlighting expectations of a gradual pace of hikes while also pushing back on expectations of balance sheet adjustment in the absence of a ‘materially higher’ policy rate.”
“GBPUSD short-term technicals: bullish-neutral—momentum indicators have softened with the turn in the MACD providing an early warning sign. Resistance over the past two sessions has been observed around 1.5700 with limited movement above the 9 day MA (1.5656).”