GBPUSD TUMBLES AFTER CARNEY RULES OUT RATE HIKE

The British pound fell sharply in the European session, after Bank of England Governor Mark Carney said in his delayed Mansion House speech, that now is not the time to raise UK interest rates.

Following his remarks, the GBPUSD pair fell to an intraday low of 1.2667, before recovering slightly towards the 1.2700 level. At present, the pair is trading around the 1.2685 handle, with GBPUSD sellers in control whilst the pair trades below the 1.2710 level.

Technically the pair remains bearish in the short and medium term, with moving average indicators turning down.

An intraday price close above 1.2730 is now needed to relieve selling pressures on GBPUSD.

To the downside, the weekly timeframe  50 period moving average is just below the current intraday price low at 1.2660, with the 20 period moving average, on the mentioned time frame, offering further support at 1.2630.

Below the 1.2630 level, the March 1st monthly high then come in focus at 1.2615, with the daily time frame 200 period moving average below at 1.2539.