A forex trade signal from Westpac
Currency analysis at Westpac recommend buying cable. They enter a fresh long in GBP/USD at 1.5434 (spot at 1.5460) with a stop at 1.5265.
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.
Their initial target is 1.56 but they say that will be adjusted over time.
They have an ongoing USD/CAD long from 1.2607 (spot at 1.2508) with a stop at 1.2455. They see 1.30 on a three month horizon but not that today's comments from Poloz put a rate cut in doubt.
In USD/JPY, they like the downside and will sell if it hits 120.30. They also like buying NZD/USD if it falls to 0.7375, nothing the potential for better milk prices.
The analyst there have been on a good run, despite getting wrong-footed on a CHF blowup trade.
cable daily
Here is the latest GBPUSD technical analysis from Greg.
