GBP/USD poised to test lower bound of current range - Lloyds

Analysts from Lloyds Bank see the GBP/USD pair poised to test the lower bound of the current 1.31 - 1.35 range.

Key Quotes:

“GBPUSD looks poised to test the lower bound of its 1.31 – 1.35 interim range, as comments from Haldane and strong US data put the pair in retreat.”

“Initial support below 1.31 lies at 1.3060/1.3030, ahead of the key Fib level at 1.2798. Resistance levels are at 1.3340/50 and 1.3425 ahead of last week’s highs in the 1.3475-1.3525 region.”

“Long term, the decline through the 2009 lows at 1.35 is viewed as the last phase in the bear trend that started back in 2007 from the 2.1160 highs. We doubt the recovery will be V-shaped. More likely we see a broader multi-month bottoming process.”