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22 Mar 2013
Forex: GBP/USD retreats from highs after Fitch
FXstreet.com (Barcelona) - The sterling dropped from multi-week highs in the vicinity 1.5245 to levels sub 1.5200 after agency Fitch placed the UK on rating watch negative. The agency backed its decision on recent growth and debt forecasts, and expects to decide whether to downgrade in a month time.
“The 2013 resistance line at 1.5262 and further up the February 22 high at 1.5321 as well as the breached one year resistance line at 1.5340 may also be reached in the days to come but should then cap”, assessed Karen Jones, Head of FICC Technical Analysis at Commerzbank. The analyst expects the cross to slip back to the psychological mark of 1.5000 in the upcoming weeks.
At the moment, the cross is up 0.28% at 1.5213 with the next resistance at 1.5266 (Upper Bolliinger) followed by 1.5330 (high Feb.22) and then 1.5452 (high Feb.20).
On the other hand, a breakdown of 1.5090 (low Mar.21) would bring 1.5079 (MA21d) and then 1.5061 (MA10d).
“The 2013 resistance line at 1.5262 and further up the February 22 high at 1.5321 as well as the breached one year resistance line at 1.5340 may also be reached in the days to come but should then cap”, assessed Karen Jones, Head of FICC Technical Analysis at Commerzbank. The analyst expects the cross to slip back to the psychological mark of 1.5000 in the upcoming weeks.
At the moment, the cross is up 0.28% at 1.5213 with the next resistance at 1.5266 (Upper Bolliinger) followed by 1.5330 (high Feb.22) and then 1.5452 (high Feb.20).
On the other hand, a breakdown of 1.5090 (low Mar.21) would bring 1.5079 (MA21d) and then 1.5061 (MA10d).