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24 Feb 2015
GBP/USD to rise to 1.5540 on a dovish Yellen – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, a dovish tone in today’s Yellen’s testimony might drag GBP/USD higher, with a break above the 100 DMA at 1.5475 expected to pave way for 1.5540 levels.
Key Quotes
“The GBP/USD pair rose to a high of 1.5473 on Monday on rising UK Gilt yield spread and weakness in the US Treasury yields. The yield spread remained in favor of the British Pound despite a surprisingly weak retail sales report from the Confederation of British Industry.”
“However, the Pound continued to march ahead, partly aided by a weak housing data in the US. The pair currently trades slightly weak at 1.5433.”
“With no major economic data due out of the UK, markets are likely to remain focused on Fed chair Janet Yellen’s testimony to congress.”
“If Yellen tilts in favor of keeping interest rate hike at record lows for a longer period, the GBP/USD pair could rise above the 23.6% retracement (of the down trend from 1.7190-1.4949) located at 1.5477 levels. Interestingly, the 100-DMA too, is located at 1.5475. Thus, a break above the same could push the pair to 1.5540-1.5580 levels.”
“On the flip side, hawkish comments from Yellen could push the pair back to 1.5334. However, the pair is likely to remain bid so long as it trades above 1.5334.”
Key Quotes
“The GBP/USD pair rose to a high of 1.5473 on Monday on rising UK Gilt yield spread and weakness in the US Treasury yields. The yield spread remained in favor of the British Pound despite a surprisingly weak retail sales report from the Confederation of British Industry.”
“However, the Pound continued to march ahead, partly aided by a weak housing data in the US. The pair currently trades slightly weak at 1.5433.”
“With no major economic data due out of the UK, markets are likely to remain focused on Fed chair Janet Yellen’s testimony to congress.”
“If Yellen tilts in favor of keeping interest rate hike at record lows for a longer period, the GBP/USD pair could rise above the 23.6% retracement (of the down trend from 1.7190-1.4949) located at 1.5477 levels. Interestingly, the 100-DMA too, is located at 1.5475. Thus, a break above the same could push the pair to 1.5540-1.5580 levels.”
“On the flip side, hawkish comments from Yellen could push the pair back to 1.5334. However, the pair is likely to remain bid so long as it trades above 1.5334.”