24 Feb 2015
Long in GBP at 1.5434; stop at 1.5265 - Westpac
FXStreet (Guatemala) - Analysts at Westpac Banking Corporation explained that they enter a fresh GBP long at 1.5434 with a stop at 1.5265.
Key Quotes:
"Two of three inputs (model and technicals) were bullish GBP last week but all three inputs are positive this week. Political risk seems to have eased if the latest voter intention surveys, showing reduced odds of an inconclusive result, are to be believed."
"The BoE's narrative has shifted too, to one of looking through a near term fall in inflation and emphasising the next move in rates will be up. All told GBP atmospherics have improved. Our initial target is 1.56. We will revise that as our model, macro and technical views evolve going forward."
Key Quotes:
"Two of three inputs (model and technicals) were bullish GBP last week but all three inputs are positive this week. Political risk seems to have eased if the latest voter intention surveys, showing reduced odds of an inconclusive result, are to be believed."
"The BoE's narrative has shifted too, to one of looking through a near term fall in inflation and emphasising the next move in rates will be up. All told GBP atmospherics have improved. Our initial target is 1.56. We will revise that as our model, macro and technical views evolve going forward."