Tuesday, July 5, 2011

Barclays Capital & Commerzbank: Comments on GBP/USD

Technical analysts at Barclays Capital think that British pound will be capped by the $1.6150 level trading versus the greenback. In their view, GBP/USD will return down to the minimums in the $1.5970 area. However, if sterling unexpectedly breaks above $1.6150, trading will become more volatile and the pair will get chance to climb to $1.6250.

Strategists at Commerzbank believe that the advance of British currency will be limited by resistance at $1.6144. If pound closes the day below $1.5957, it will be poised further down. On the other hand, if sterling closes above $1.6144, it will get chance to rise to $1.6230/65. The bank’s general outlook for GBP/USD is bearish as long as it’s staying below $1.6320.

daily gbpusd 16-07 

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