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19 Mar 2013
Forex: GBP/USD retraces from session highs
FXstreet.com (Barcelona) - The sterling is correcting lower after hitting session highs above 1.5140 on Tuesday, pushed higher after UK inflation figures up-ticked during February to 2.8% on a yearly basis.
Markets remain sidelined however, as uncertainties from Cyprus continues to weight on sentiment.
“Recent reports that soon-to-be BoE Governor has had talks with Treasury officials have underpinned speculation that the Chancellor could announce a new mandate for the BoE tomorrow… In this scenario, sterling could be headed for another bout of weakness. Heading into the budget we continue to favour selling sterling on rallies”, assessed Jane Foley, Strategist at Rabobank.
At the moment, the cross is up 0.02% at 1.5111 with the next resistance at 1.5160 (high Mar.18) followed by 1.5177 (high Mar.15) and finally 1.5200 (high Mar.5).
On the flip side, a breach of 1.5072 (low Mar.18) would expose 1.5011 (MA10d) and then 1.4965 (low Mar.7).
Markets remain sidelined however, as uncertainties from Cyprus continues to weight on sentiment.
“Recent reports that soon-to-be BoE Governor has had talks with Treasury officials have underpinned speculation that the Chancellor could announce a new mandate for the BoE tomorrow… In this scenario, sterling could be headed for another bout of weakness. Heading into the budget we continue to favour selling sterling on rallies”, assessed Jane Foley, Strategist at Rabobank.
At the moment, the cross is up 0.02% at 1.5111 with the next resistance at 1.5160 (high Mar.18) followed by 1.5177 (high Mar.15) and finally 1.5200 (high Mar.5).
On the flip side, a breach of 1.5072 (low Mar.18) would expose 1.5011 (MA10d) and then 1.4965 (low Mar.7).