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22 Jun 2015
GBP/USD forecast: recent upside to the test – BBH and Commerzbank
FXStreet (Edinburgh) - Auspicious results in the UK economy and the upbeat tone from the BoE allowed the pound to be the best performer last week, lifting GBP/USD beyond the 1.5900 handle.
According to Commerzbank’s Senior Technical Analyst Axel Rudolph, spot “halted for now at the resistance line drawn from the peaks seen this year – this is located at 1.5943 – we suspect we may see some further consolidation. It is possible that this is a rising wedge pattern (which is ultimately bearish and we are cautious for now). It is interesting to note that intraday the Elliott wave count is suggesting that there is potential to 1.6120 and then the 1.6188/61.8% retracement”.
Furthermore, the research team at BBH commented, “Sterling has rallied nearly 5% since June 5. It recorded new highs for the year last week near $1.5930. To do so it had to surpass the 50% retracement objective of the downtrend that began last July. The move does not look over. Technical indicators do not look toppish. The only note of caution is that sterling finished the week above it upper Bollinger Band (~$1.5870). While the next immediate psychological target is $1.60, we note that the 61.8% retracement is found just below $1.62. Initial support is seen in the $1.5800-$1.5815 area”.
According to Commerzbank’s Senior Technical Analyst Axel Rudolph, spot “halted for now at the resistance line drawn from the peaks seen this year – this is located at 1.5943 – we suspect we may see some further consolidation. It is possible that this is a rising wedge pattern (which is ultimately bearish and we are cautious for now). It is interesting to note that intraday the Elliott wave count is suggesting that there is potential to 1.6120 and then the 1.6188/61.8% retracement”.
Furthermore, the research team at BBH commented, “Sterling has rallied nearly 5% since June 5. It recorded new highs for the year last week near $1.5930. To do so it had to surpass the 50% retracement objective of the downtrend that began last July. The move does not look over. Technical indicators do not look toppish. The only note of caution is that sterling finished the week above it upper Bollinger Band (~$1.5870). While the next immediate psychological target is $1.60, we note that the 61.8% retracement is found just below $1.62. Initial support is seen in the $1.5800-$1.5815 area”.