FXstreet.com (Córdoba) - According to the Wells Fargo team, recent news has been mixed for the pound as the economic picture remains subdued but the Bank of England has signaled some reluctance to cut rates further.
"A brighter European and global market outlook could offer the pound a lift in the near-term, but the medium-term prospects for sustained sterling gains are limited, and our forecast profile remains neutral to moderately negative", says Wells Fargo.
"GBP/USD technicals are turning bullish, with the 20-day MA recently crossing above the 50-day MA", they say. "Initial resistance is from the June-July highs in the $1.5768-$1.5793 area. A break of those levels would target a potential move to the late-April high of $1.6302".
"Support levels include the July low of $1.5394, the June low of $1.5269 and the January low of $1.5235", they add.
"A brighter European and global market outlook could offer the pound a lift in the near-term, but the medium-term prospects for sustained sterling gains are limited, and our forecast profile remains neutral to moderately negative", says Wells Fargo.
"GBP/USD technicals are turning bullish, with the 20-day MA recently crossing above the 50-day MA", they say. "Initial resistance is from the June-July highs in the $1.5768-$1.5793 area. A break of those levels would target a potential move to the late-April high of $1.6302".
"Support levels include the July low of $1.5394, the June low of $1.5269 and the January low of $1.5235", they add.
