Monday, September 21, 2015

GBPUSD: Downside risks still exists - BBH

FXStreet (Delhi) – Research Team at BBH, suggests that even though the Sterling gained about 0.7% last week, but the poor price action before the weekend warns of downside risks.

Key Quotes

“It appears to have traced out a shooting star candlestick pattern by rallying strongly initially, reaching it best level since August 26 (~$1.5650), and then sold off to close below the open and near its lows.”

“Sterling's high met the 61.8% retracement objective of the decline from the year's high set on June 18 (~$1.5930) to the September 4 low (~$1.5165). Initial support is seen near $1.5470, but a breach of the $1.5400-$1.5415 area would be more significant from a technical perspective.”

“Although wage pressures appear to be somewhat greater in the UK than the US, and there may be another hawkish dissent at the October 8 MPC meeting, it is hard to envisage the BOE lifting rates before the Fed.”

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