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5 Dec 2014
GBP/USD remains neutral ahead of US NFP - FXStreet
FXStreet (Bali) - Ahead of the US NFP report, technically, the short term picture in GBP/USD remains neutral, notes Valeria Bednarik, Chief Analyst at FXStreet.
Key Quotes
"Cable traded quite choppy this Thursday but within early week range, faltering once again on its attempts to regain the 1.5700 figure. Early with the European opening, the Bank of England released its monthly economic decision, leaving both rates and the APP program unchanged as policymakers gave more weight to the risks from low inflation and a weak global economic outlook than to the strong local recovery. On Friday, the BOE will release its Consumer Inflation Expectations, currently at 2.8%, and that could be a good barometer on what’s next for inflation in the UK, and the Pound."
"Technically, the short term picture remains neutral with the 1 hour chart showing price moving back and forth around a flat 20 SMA. Indicators are also stuck around their midlines, lacking directional strength. In the 4 hours chart the technical picture is mostly the same, with indicators around their midlines and 20 SMA flat a few pips above current price. The pair has been pretty much contained between 1.5585 and 1.5760 for most of the last 3 weeks, so it will take some follow through any of both to see some directional strength surging in the pair.
Key Quotes
"Cable traded quite choppy this Thursday but within early week range, faltering once again on its attempts to regain the 1.5700 figure. Early with the European opening, the Bank of England released its monthly economic decision, leaving both rates and the APP program unchanged as policymakers gave more weight to the risks from low inflation and a weak global economic outlook than to the strong local recovery. On Friday, the BOE will release its Consumer Inflation Expectations, currently at 2.8%, and that could be a good barometer on what’s next for inflation in the UK, and the Pound."
"Technically, the short term picture remains neutral with the 1 hour chart showing price moving back and forth around a flat 20 SMA. Indicators are also stuck around their midlines, lacking directional strength. In the 4 hours chart the technical picture is mostly the same, with indicators around their midlines and 20 SMA flat a few pips above current price. The pair has been pretty much contained between 1.5585 and 1.5760 for most of the last 3 weeks, so it will take some follow through any of both to see some directional strength surging in the pair.