Forex Flash: GBP/AUD potential upside to the 1.62 region – Danske Bank

The pair is now retreating from today’s highs above the key resistance at 1.51, although still trading not far from 2013 lows around 1.50

According to Chief Analyst A.Lohman-Rasmussen at Danske Bank, the formation of a wedge pattern followed lows at 1.4550, hinting the likeliness of a broader basing structure. Since January lows below 1.50, bulls are trying to rein in the market, pushing the cross beyond the psychological 1.50 mark.

“Clearing 1.5375 (8 January high) will open the way for a test of the wedge upper boundary at 1.5620 and the 31 December 2012 high at 1.5675. Above here strengthens for 1.5885 next (5 October high) ahead of the 2012 peak (23 May) at 1.6185”, the expert concluded.

Feb 4, 2013

Forex Flash: NZ prime minister sees NZD/USD as overvalued – UBS

Overnight, New Zealand's Prime Minister Key said the NZD/USD is overvalued, however that the AUD/NZD is still within its normal band. According to Research Analyst Gareth Berry at UBS, “We expect this cross to continue to trade heavy over the coming months as the relative stance of monetary policy shifts in the kiwi's favor.”

Forex Flash: BoE to be utilize more unconventional approach – Goldman Sachs

According to the Economics Research Team at Goldman Sachs, “The UK’s disappointing growth performance primarily reflects insufficient demand and short-term supply factors, rather than long-term weakness in the supply capacity of the economy. For this reason, we sympathize with those who argue that the BoE could and should do more to support the recovery – ‘effective’ interest rates in the UK have remained stubbornly high and credit availability has been too tight.”