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4 Feb 2016
GBPUSD: Fate lies in the hands of BoE – Lloyds Bank
Research Team at Lloyds Bank, suggests that the broader USD capitulation yesterday drove GBPUSD up through channel resistance at 1.4450/60, extending the recovery into our target region around 1.4550-1.4650.
Key Quotes
“This is key resistance in the short term as we head into “super Thursday” today. If Governor Carney is less dovish, causing a break of this resistance region, it will suggest a broader medium term correction is in play and we can work our way back to longer term key levels around 1.48-1.50.
A dovish outlook and a decline back through 1.4450/20 pivotal support, will confirm that 1.4650 region was likely a lower high within the core trend and while sideways action is possible, the next main move will be a test of 1.40 support.”
Key Quotes
“This is key resistance in the short term as we head into “super Thursday” today. If Governor Carney is less dovish, causing a break of this resistance region, it will suggest a broader medium term correction is in play and we can work our way back to longer term key levels around 1.48-1.50.
A dovish outlook and a decline back through 1.4450/20 pivotal support, will confirm that 1.4650 region was likely a lower high within the core trend and while sideways action is possible, the next main move will be a test of 1.40 support.”