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11 Mar 2013
Forex: GBP/USD finds support at 1.4900
After bottoming in the area of 1.4900, the sterling found buying interest that pushed the cross to the current levels of 1.4930/35, as traders continue to digest the BoE decision and the strong figures from the NFP.
“We have also heard enough to know that a weaker pound is favored by both MPC and the Government. No matter that the negatives (falling household incomes) will surely outweigh the positives (improved profit margins for exporters). This is the policy and it will take GBP/USD to 1.40 next”, assessed the research team at Societe Generale.
At the moment, the cross is up 0.08% at 1.4933 facing the next hurdle at 1.5067 (trend line) followed by 1.5199 (high Mar.5).
On the downside, a break below 1.4886 (low Mar.8) would bring 1.4785 (low Mar.2010).
“We have also heard enough to know that a weaker pound is favored by both MPC and the Government. No matter that the negatives (falling household incomes) will surely outweigh the positives (improved profit margins for exporters). This is the policy and it will take GBP/USD to 1.40 next”, assessed the research team at Societe Generale.
At the moment, the cross is up 0.08% at 1.4933 facing the next hurdle at 1.5067 (trend line) followed by 1.5199 (high Mar.5).
On the downside, a break below 1.4886 (low Mar.8) would bring 1.4785 (low Mar.2010).