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3 Jun 2015
GBP/USD technicals favour the downside – Scotiabank
FXStreet (Barcelona) - GBP/USD trades soft after the release of unexpectedly weak services PMI, with technicals biased for further downside, notes Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank.
Key Quotes
“GBP is weak, underperforming with a 0.5% decline as market participants consider an unexpectedly weak services PMI—falling to a 2015 low of 56.5 from 59.5 in April. The disappointment is weighing on GBP via policy expectations, with the 2Y yield spread showing renewed vulnerability. Thursday’s BoE meeting is unlikely to be deliver any surprises, with focus shifting to the June 17 minutes release.”
“GBPUSD short-term technicals: bearish—momentum has slowed however signals remain biased to further downside.”
“Gains have been challenged above 1.5350. Support is expected at 1.520, and we note the potential for considerable vulnerability on a break below 1.5180.”
Key Quotes
“GBP is weak, underperforming with a 0.5% decline as market participants consider an unexpectedly weak services PMI—falling to a 2015 low of 56.5 from 59.5 in April. The disappointment is weighing on GBP via policy expectations, with the 2Y yield spread showing renewed vulnerability. Thursday’s BoE meeting is unlikely to be deliver any surprises, with focus shifting to the June 17 minutes release.”
“GBPUSD short-term technicals: bearish—momentum has slowed however signals remain biased to further downside.”
“Gains have been challenged above 1.5350. Support is expected at 1.520, and we note the potential for considerable vulnerability on a break below 1.5180.”