FXStreet (Bali) - According to Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank, technical analysis in GBP/USD suggests that further upside pressures are likely.

Key Quotes

"Upside bias—Expected weekly range to fall within 1.6825 and 1.7100 (historical congestion to resistance)."

"GBP is proving itself resilient today, after the UK released a softer than expected inflation print, falling –0.1%m/m and rising just 1.5% on headline and 1.6%y/y on core; while both RPI and PPI were soft as well. Together this suggest that even as housing prices continue to rise (ONS house prices rose 9.9%y/y) inflationary pressures in the UK are softening, which provides some leeway for the BoE. The release of the central bank minutes (tomorrow at 4:30am EST) are likely to show an underlying MPC who is turning increasingly hawkish, putting GBP at risk for further upside risk."

"GBPUSD short‐term technicals: bullish—technical studies warn of upside pressure as spot touched a multi-year high yesterday of 1.7011. The RSI at just 65 leaves significant upside room before GBP reaches overbought levels. We are biased to be long GBP."

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center