17 Jun 2014
GBP/USD: Breach of 1.70 may see 1.7040/45 - OCBC
FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that a breach of 1.7000 in GBP/USD once again may see a test of 1.7040/45.
Key Quotes
"In the wake of Carney’s comments last week, UK data points may garner increased scrutiny going ahead, with the slew of May price numbers due for release later today. After a brief test above 1.7000, the GBP-USD remained aloft above 1.6950 into end-NY and may remain somewhat supported into the BOE MPC minutes due on Wednesday."
"Notably, the BOE’s Miles (noted dove) was quoted in the Times as saying that he would expect to vote for a hike by May, adding that “growth has come in stronger than expected”. Given the BOE’s current demeanor, we look for opportunities to initiate a bullish GBP -USD view going ahead. Expect support to materialize around 1.6930 while a breach of 1.7000 once again may see a test towards 1.7040/45."
Key Quotes
"In the wake of Carney’s comments last week, UK data points may garner increased scrutiny going ahead, with the slew of May price numbers due for release later today. After a brief test above 1.7000, the GBP-USD remained aloft above 1.6950 into end-NY and may remain somewhat supported into the BOE MPC minutes due on Wednesday."
"Notably, the BOE’s Miles (noted dove) was quoted in the Times as saying that he would expect to vote for a hike by May, adding that “growth has come in stronger than expected”. Given the BOE’s current demeanor, we look for opportunities to initiate a bullish GBP -USD view going ahead. Expect support to materialize around 1.6930 while a breach of 1.7000 once again may see a test towards 1.7040/45."