GBP/USD remains supported near 1.3060 – Lloyds

Analysts at Lloyds Bank expect Cable to target the 1.3060 area, while the short term resistance is seen at 1.3180-1.3200.

Key Quotes

“After the BoE delivered more easing than anticipated GBPUSD immediately traded lower from 1.3340 to near 1.31. However, price action was relatively limited through the remainder of yesterday afternoon, potentially as a result of the stretched positioning. Given the downward momentum, key support at 1.3060 is likely to be the next target, with a move through there opening up 1.2945 Fib support and 1.2798 range lows. Initially, 1.3180-1.3200 is short-term resistance, with 1.3280/90, spike highs at 1.3370 and 1.35 range highs resistance above there”

“Long term, the decline through the 2009 lows at 1.35 is viewed as the last phase in the bear trend that started back in 2007 from the 2.1160 highs. We favour a multi-month bottoming process. What isn’t clear yet is whether the current rebound from the 1.2800 region is the start of this process. A decline through there sees next major support in the 1.22-1.18 region”.