| GBP/USD intraday: under pressure. |
Pivot: 1.6130.
Our Preference: SHORT positions below 1.613 with targets @ 1.6065 & 1.604. Alternative scenario: The upside penetration of 1.613 will call for 1.6165 & 1.6185. Comment: as long as the resistance at 1.613 is not surpassed, the risk of the break below 1.6065 remains high. |
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The stall in sterling. Sterling was on the softer side once again yesterday, with EUR/GBP sustaining the move above the 0.80 level that was seen at closing yesterday. The softer tone was also evident against the dollar, with cable dipping to 1.61 level. The PMI data seen this week for both the manufacturing and the service sector (falling from 53.7 to 52.2) seem to suggest overall that the economy probably returned to expansion in the third quarter, but only modestly so judging by these latest numbers. On the charts, sterling is starting to look a little tired, especially vs. the dollar with this shaping to be the third failed attempt at a sustained push above the 1.60 level this year. Of course, it’s just as much about the dollar as it is sterling, with the US currency reversing the weakening trend seen in the run-up to the QE announcement last month. The Bank of England’s MPC meeting this week is not expected to result in any policy announcements, but the current tranche of bond purchases (quantitative easing) will have been completed by the time of the MPC’s November round. Some are suggesting that further QE could be announced then, but in part this is likely to depend on the success of the current round and also of the Funding for Lending scheme started in the summer. It still boils down to timing though, with further QE from the Bank looking likely in the coming few months.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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