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15 Apr 2015
GBP/USD upside still in play post Beige Book
FXStreet (Guatemala) - GBP/USD is currently trading at 1.4828 a high of 1.4840 and low of 1.4701 on the session post the beige book.
GBP/USD has been taking advantage of a weak dollar environment as markets take in to account the recent bearishness around the US recovery and discounts the idea of a June hike. We have had poor numbers from China also, as well as the IMF recently downgrading the US economic outlook. All of this reminds us of the poor NFP's of late ad weakness in the manufacturing sector.
The beige book gave a a modestly positive review for the US economy but noted that poor weather, a strong dollar and the price of oil were factors that perhaps were hindering much progression. Technically, the bears are in control, and Karen Jones, chief analyst at Commerzbank explained that their longer term target remains the 1.4291/29 area –"This is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."
GBP/USD has been taking advantage of a weak dollar environment as markets take in to account the recent bearishness around the US recovery and discounts the idea of a June hike. We have had poor numbers from China also, as well as the IMF recently downgrading the US economic outlook. All of this reminds us of the poor NFP's of late ad weakness in the manufacturing sector.
The beige book gave a a modestly positive review for the US economy but noted that poor weather, a strong dollar and the price of oil were factors that perhaps were hindering much progression. Technically, the bears are in control, and Karen Jones, chief analyst at Commerzbank explained that their longer term target remains the 1.4291/29 area –"This is where the 78.6% Fibonacci retracement of the 2009 uptrend meets the 2010 low. Note that this is also a support line extending back to 1985."