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14 May 2013
Forex: GBP/USD advances above 1.5300
FXstreet.com (Barcelona) - The sterling is consolidating its positive momentum above the key mark at 1.5300 on Tuesday, favoured by the increasing risk-on tone and following its European counterpart.
In the view of the research team at BBH, “Sterling's break down through a 2-month uptrend on an intraday basis warns that the $1.56 area, which has been repeatedly tested with little satisfaction, marks a more significant top. At the same time, the fact that sterling closed above the trend line is consistent with our sense that a period of consolidation, at least in the early part of the new week, is likely. During this phase, sterling can recover toward $1.5420-50”.
At the moment, GBP/USD is up 0.06% at 1.5309 and a breakout of 1.5405 (MA21d) would then target 1.5447 (low May 7) en route to 1.5465 (MA0d).
On the flip side, support levels are located at 1.5275 (low May 13) ahead of 1.5265 (low Apr.25) and finally 1.5246 (MA55d).
In the view of the research team at BBH, “Sterling's break down through a 2-month uptrend on an intraday basis warns that the $1.56 area, which has been repeatedly tested with little satisfaction, marks a more significant top. At the same time, the fact that sterling closed above the trend line is consistent with our sense that a period of consolidation, at least in the early part of the new week, is likely. During this phase, sterling can recover toward $1.5420-50”.
At the moment, GBP/USD is up 0.06% at 1.5309 and a breakout of 1.5405 (MA21d) would then target 1.5447 (low May 7) en route to 1.5465 (MA0d).
On the flip side, support levels are located at 1.5275 (low May 13) ahead of 1.5265 (low Apr.25) and finally 1.5246 (MA55d).