FXStreet (Guatemala) – GBP/USD is currently trading at 1.5731 with a high of 1.5768 and a low of 1.5707.
GBP/USD has been buoyed on prospects of an earlier than expected rate hike from the BoE. However, analyst at Rabobank explained that while it appears that the voting pattern of the MPC is set to split again soon, it could still be some time before there is a majority vote in favour of a rate hike. “Nevertheless, the strength of this week’s wage data combined with recent hawkish remarks from Forbes and now Weale has reignited market speculation that the MPC could be willing to hike interest rates sooner than had been expected.”
Technically, GBP/USD’s outlook remains negative according to Karen Jones, chief analyst at Commerzbank. “Given the recent failure of the market around the 50% retracement and 200 week ma (circa 1.5872) and the fact that we continue to suspect that this is a potential large bearish rising wedge pattern – we are viewing this in an increasingly negative light.”
“Intraday Elliott wave count has become more negative and is suggesting that the market will now fail on rallies to the 1.5790/1.5820 area. The market will have to drop back below 1.5550 (February high) to trigger losses to the 2 month uptrend at 1.5432. Only below here will cast attention back to the support at 1.5171, the June low.”
(Market News Provided by FXstreet)