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18 Mar 2014
Flash: GBP/USD facing downside pressure – FXStreet
FXStreet (Edinburgh) - Ross Burland, Analyst and Editor at FXStreet, believes there are downside risks for the GBP/USD in the upcoming months.
Key Quotes
“I’m not sure that the BoE can actually really know what is going to be the outcome of an economy that is starting to borrow again, but one thing is clear, the British Government and the Bank are adamant on creating an environment for UK citizens to feel comfortable again about racking up debt”.
“Anyway, inflation is going to be one to watch and how the BoE are going to attempt to control that beast. But the truth of the matter, that beast is one hard beast to tame as it is controlled by many things”.
“So now, the February low (1.6585) is key here and if the pound manages closes below here, I suspect that the market can then break back below 1.6532 (the 8 month uptrend) and we can then start to re-focus attention on to the 1.6259/29 support zone that are the September high and the 23.6% retracement of the move up from July 2013”.
Key Quotes
“I’m not sure that the BoE can actually really know what is going to be the outcome of an economy that is starting to borrow again, but one thing is clear, the British Government and the Bank are adamant on creating an environment for UK citizens to feel comfortable again about racking up debt”.
“Anyway, inflation is going to be one to watch and how the BoE are going to attempt to control that beast. But the truth of the matter, that beast is one hard beast to tame as it is controlled by many things”.
“So now, the February low (1.6585) is key here and if the pound manages closes below here, I suspect that the market can then break back below 1.6532 (the 8 month uptrend) and we can then start to re-focus attention on to the 1.6259/29 support zone that are the September high and the 23.6% retracement of the move up from July 2013”.