Friday, July 15, 2011

Barclays Capital: comments on GBP/USD and EUR/GBP

Analysts at HSBC note that the rate of British currently is currently determined more by the dynamics of euro and US dollar, rather than be the factors specifically related to sterling.

In their view, pound could gain independence in trading only if UK economic outlook changes either strongly improving or dramatically deteriorating. Until that happens GBP is going to find itself trapped between a rock and a hard place.

All in all, HSBC sees the prospects of British economy and currency as rather pessimistic.

Strategists at Barclays Capital note that the GBP/USD may be in a bear trap. The pattern will confirm if it closes today above $1.6140. As for EUR/GBP, the bank claims that after jumping from support in the 0.8745/40 zone it may be on its way up to 0.90. If euro drops below 0.8740, it will revisit May base in the 0.8610 region.

daily gbpusd 15-55

Chart. Daily GBP/USD

h4 eurgbp 15-56

Chart. H4 EUR/GBP

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