13 Jul 2015
GBP/USD: Bears take revenge on Greek uncertainties
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5490 with a high of 1.5587 and a low of 1.5480.
GBP/USD has settled down in to a sideways drift having dropped over a big figure from the start of the US shift.
GBP/USD price action
GBP/USD has been volatile within a relatively tight range after closing last week at 1.5506 in the US. The major the opened with the bearish gap on the Greek weekend "no deal" so far news at 1.5496, making a low of 1.5486 before the major recovered back in to the 1.5550's when a deal was agreed in the early hours of London's session overnight. Supply took GBP/USD to 1.5500 support before a double top at 1.5589 taking us in a decisive drift to 1.5481. Technically, Karen Jones, chief analyst at Commerzbank noted that rallies should remain capped by circa 1.5574, and that resistance is reinforced by the 1.5602 previous uptrend (now resistance) and the 1.5653 20 day ma.
GBP/USD fundamentals
GBP/USD has been caught up in the Greek debacle, acting as a safe haven trade on positive headlines to running downside plays on uncertainties such as a Grexit as the dollar takes up the advantage on interest rate prospects as markets begin to look beyond the noise of Greece. We now await to see whether Greece's prime minister, Alexis Tsipras, can pass the six reforms through the Greek parliament by Wednesday which are said to include tax hikes, spending cuts, and pension reforms. Tsipras will have a challenge on his hands with the Syriza-led bloc, who rebelled this weekend when he sought their endorsement for such reforms.
Meanwhile, IMM Net Speculators’ Positioning as at 7 July 2015 saw GBP net shorts rose to 22,973 fully reversing the sharp fall to 12,759 previously. Analysts at Rabobank explained, "We maintain relatively positive view on the GBP against the EUR and expect the cable to soften towards the end of the year as the Fed is likely to raise interest rates ahead of the BoE."
GBP/USD has settled down in to a sideways drift having dropped over a big figure from the start of the US shift.
GBP/USD price action
GBP/USD has been volatile within a relatively tight range after closing last week at 1.5506 in the US. The major the opened with the bearish gap on the Greek weekend "no deal" so far news at 1.5496, making a low of 1.5486 before the major recovered back in to the 1.5550's when a deal was agreed in the early hours of London's session overnight. Supply took GBP/USD to 1.5500 support before a double top at 1.5589 taking us in a decisive drift to 1.5481. Technically, Karen Jones, chief analyst at Commerzbank noted that rallies should remain capped by circa 1.5574, and that resistance is reinforced by the 1.5602 previous uptrend (now resistance) and the 1.5653 20 day ma.
GBP/USD fundamentals
GBP/USD has been caught up in the Greek debacle, acting as a safe haven trade on positive headlines to running downside plays on uncertainties such as a Grexit as the dollar takes up the advantage on interest rate prospects as markets begin to look beyond the noise of Greece. We now await to see whether Greece's prime minister, Alexis Tsipras, can pass the six reforms through the Greek parliament by Wednesday which are said to include tax hikes, spending cuts, and pension reforms. Tsipras will have a challenge on his hands with the Syriza-led bloc, who rebelled this weekend when he sought their endorsement for such reforms.
Meanwhile, IMM Net Speculators’ Positioning as at 7 July 2015 saw GBP net shorts rose to 22,973 fully reversing the sharp fall to 12,759 previously. Analysts at Rabobank explained, "We maintain relatively positive view on the GBP against the EUR and expect the cable to soften towards the end of the year as the Fed is likely to raise interest rates ahead of the BoE."