Analysts: bearish on GBP/USD
Morgan Stanley went short on GBP/USD from $1.6060, with a stop at $1.6160 and and a target at $1.5750.
"We expect GBP/USD to come under renewed pressure. We believe that the risks for GBP are likely to intensify, with heightened market expectations regarding the UK economic outlook likely to face some challenges," MS explains.
Analysts at Commerzbank expect the $1.6070/1.6125 resistance area to cap the upside. "We regard the pattern as a potential double top. A daily close below $1.5895 will complete the pattern and open the way for our target at $1.5535.”
ANZ strategists expect the cable to trade sideways in the $1.6200/1.5700 range into the year-end as much of the UK economic progress is already priced in by the markets. They point that pretty much will depend on Yellen’s testimony today at 15:00 GMT.
Chart. Daily GBP/USD