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22 Apr 2013
Forex: GBP/USD drives back to 1.5240 high on London opening
FXstreet.com (Barcelona) - As the week started, the GBP/USD printed its daily low at 1.5205, and after an Asian session capped by resistance at 1.5240, the pair returned to its lower band of the range just ahead of the London opening. Once the bell ringed, the market got back to resistance. The UK credit rating was downgraded by Fitch agency from AAA to AA+/stable Friday night.
“As we’ve been through this before we don’t expect unusual price action in gilts today, although GBP is probably more vulnerable to some near-term weakness. The UK government leaked on Sunday that an augmentation to Funding for Lending will be announced over the next two weeks”, wrote TD Securities analyst Annette Beacher.
“We continue to view 1.5412/20, the recent high and the 38.2% retracement as an interim high. Loss of the 1.5178 uptrend is needed to add weight to the idea that the market has resumed its down move”, wrote Commerzbank analyst Karen Jones.
“As we’ve been through this before we don’t expect unusual price action in gilts today, although GBP is probably more vulnerable to some near-term weakness. The UK government leaked on Sunday that an augmentation to Funding for Lending will be announced over the next two weeks”, wrote TD Securities analyst Annette Beacher.
“We continue to view 1.5412/20, the recent high and the 38.2% retracement as an interim high. Loss of the 1.5178 uptrend is needed to add weight to the idea that the market has resumed its down move”, wrote Commerzbank analyst Karen Jones.