More investors start anticipating further economic stimuli as we are nearing Ben Bernanke’s Jackson Hole speech. All investors are focused on the event, which may well become a crucial one. Mario Draghi is expected to make a speech as well.
Melinda Bergess, an analyst for RBS, assumes that speculators should wait for September’s FRS and ECB meetings prior to making major trading decisions.
If both the central bankers hint at the expected economic stimuli, investors may turn riskier. If this is the case, the British Pound may weaken versus G10 currencies except GBPJPY and GBPUSD.
China’s economic slowdown and lower commodity prices have already had a negative impact on GBPAUD. According to RBS, the Aussie is the most risky currencies among the G10 basket. The expert is sure that the neutral tone of Bernanke’s speech will allow GBPAUD to decline further.
According to , the British Pound keeps weakening against the US Dollar. The experts report that GBPUSD is forming wave А/В of level H4.
A further downswing (if the price consolidates below 1.5753) will probably meet support around 1.5749, 1.5717, 1.5700, 1.5683. The current bearish move will be completed as soon as the price consolidates above 1.5873. in this case, the price may encounter resistance at 1.5911.
