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21 May 2014
GBP technicals mixed - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes the recent developments of the pound.
Key Quotes:
"GBP is up on a surge in retail sales and BoE minutes that contained no surprises and a 9‐0 vote. Retail sales were surprisingly strong, with headline up 6.9%y/y and exauto up 7.7% and an upward revision to the March data (see chart)."
"All of which suggests that consumption in the UK is notably strong and supports the risk of an earlier than expected interest rate hike. The near‐term outlook for GBP continues to be positive as the fundamental dynamics suggest GBP will test back up to 1.70."
"GBP/USD short‐term technicals: mixed—spot is climbing higher and warning of further upside risk; while technicals are mixed with the MACD still warning of downside risk. Accordingly, there is better risk/reward elsewhere. Support lies at today’s open of 1.6838; while resistance lies at 1.6920."
Key Quotes:
"GBP is up on a surge in retail sales and BoE minutes that contained no surprises and a 9‐0 vote. Retail sales were surprisingly strong, with headline up 6.9%y/y and exauto up 7.7% and an upward revision to the March data (see chart)."
"All of which suggests that consumption in the UK is notably strong and supports the risk of an earlier than expected interest rate hike. The near‐term outlook for GBP continues to be positive as the fundamental dynamics suggest GBP will test back up to 1.70."
"GBP/USD short‐term technicals: mixed—spot is climbing higher and warning of further upside risk; while technicals are mixed with the MACD still warning of downside risk. Accordingly, there is better risk/reward elsewhere. Support lies at today’s open of 1.6838; while resistance lies at 1.6920."