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29 May 2013
GBP/USD back to 1.5110/20
FXstreet.com (Barcelona) - The recent correction higher of the sterling run out of steam in the vicinity of 1.5150 on Wednesday, retreating afterwards to the current area of 1.5115/20.
Data wise, the CBI Distributive Trades Survey dropped to -11.1 on a monthly basis for the month of May, missing expectations at 3. According to Strategist Camilla Sutton at Scotiabank, “technical studies all warn of further downside pressure and a test of the March 2013 low of 1.4832. We are biased to be short and see near‐term support at the psychological 1.50 and resistance at 1.5085”. It is worth noting that the bank holds a year-end target of 1.45.
The pair is now up 0.51% at 1.5117 with the next resistance at 1.5134 (high May 28) followed by 1.5136 (MA10d) and then 1.5157 (high May27). On the flip side, a breakdown of 1.5008 (hourly low May 29) would expose 1.4915 (low Mar.14) and finally 1.4892 (low Mar.13).
Data wise, the CBI Distributive Trades Survey dropped to -11.1 on a monthly basis for the month of May, missing expectations at 3. According to Strategist Camilla Sutton at Scotiabank, “technical studies all warn of further downside pressure and a test of the March 2013 low of 1.4832. We are biased to be short and see near‐term support at the psychological 1.50 and resistance at 1.5085”. It is worth noting that the bank holds a year-end target of 1.45.
The pair is now up 0.51% at 1.5117 with the next resistance at 1.5134 (high May 28) followed by 1.5136 (MA10d) and then 1.5157 (high May27). On the flip side, a breakdown of 1.5008 (hourly low May 29) would expose 1.4915 (low Mar.14) and finally 1.4892 (low Mar.13).