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9 Apr 2015
Long GBP/USD, target 1.4980 – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team gives the technical outlook and key levels for GBP/USD, maintaining a long position on the pair, targeting 1.4980 levels.
Key Quotes
“The monetary authorities are in no rush to raise rates as inflation fell to zero in February, an historic low. Another reason for delaying interest rates hikes is the appreciation of the GBP against the EUR. This had the potential to prolong the period for which CPI inflation would remain below the target. We expect BoE to start raising rates in the first quarter 2016.”
“GBP traders will be focused on general election (May 7) with two main parties being neck-and-neck in opinion polls, and the release of BoE quarterly inflation report on May 13.”
“Our long GBP/USD position reached its stop-loss level today. We are looking to get long again at lower levels and have place our buy offer at 1.4740, low April 7. However, worries about the outcome of a May 7 national election may weigh heavily on the sterling, so the risk of long position is elevated.”
“We expect the GBP to depreciate against the EUR. Our buy order on the EUR/GBP was filled at 0.7270.”
“Resistance: 1.4885 (hourly high Apr 9), 1.4972 (high Apr 8), 1.4981 (high Apr 6)”
“Support: 1.4740 (low Apr 1), 1.4722 (low Mar 20), 1.4689 (low Mar 19”
“GBP/USD: buy at 1.4740, if filled – target 1.4980, stop-loss 1.4600, risk factor ***”
Key Quotes
“The monetary authorities are in no rush to raise rates as inflation fell to zero in February, an historic low. Another reason for delaying interest rates hikes is the appreciation of the GBP against the EUR. This had the potential to prolong the period for which CPI inflation would remain below the target. We expect BoE to start raising rates in the first quarter 2016.”
“GBP traders will be focused on general election (May 7) with two main parties being neck-and-neck in opinion polls, and the release of BoE quarterly inflation report on May 13.”
“Our long GBP/USD position reached its stop-loss level today. We are looking to get long again at lower levels and have place our buy offer at 1.4740, low April 7. However, worries about the outcome of a May 7 national election may weigh heavily on the sterling, so the risk of long position is elevated.”
“We expect the GBP to depreciate against the EUR. Our buy order on the EUR/GBP was filled at 0.7270.”
“Resistance: 1.4885 (hourly high Apr 9), 1.4972 (high Apr 8), 1.4981 (high Apr 6)”
“Support: 1.4740 (low Apr 1), 1.4722 (low Mar 20), 1.4689 (low Mar 19”
“GBP/USD: buy at 1.4740, if filled – target 1.4980, stop-loss 1.4600, risk factor ***”