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GBP/USD capped 1.5130

FXstreet.com (London) - GBP/USD breached 1.5100 yesterday with a low of 1.5021 after the London open, drifiting higher throughout the day as the market digested the data from Bernakes speech in what was a disordely day of emmence volitility.

The pair were eventually capped at 1.5130 in NA sesssion and has lost 67 pips in Asia overnight, recording a low of 1.5063. The pair have been handed back over to Europe oscillating around the figure, 1.5100. There isn’t any data scheduled today, but coming in a moment, Paul Fisher, in favour of QE and a dove, is shceduled to speak at 8am on the official London open. The pound may come under further pressure before the week is out, given the negativity around affiars in the UK and with an array of poor data of late. To top off what has been a bad week for the pound, losing 260 pips and falling to the lowest levels since the summer of 2010, the IMF warned the UK is a long way from a strong and sustainable recovery. Things are appearing to be gloomy in the news again for the pound, with a Dovish set of minutes which were released this week, when the MPC were voting unanimously to keep rates on hold and voted 6-3 in favour of maintaining the asset purchase target at £375bn. Moreover, incoming BoE govener Carney isn’t likley to rush to change policy in July.

On the charts, the pair are trading below the 61.8% correction and were resisted at 1.5130. The possibility of extending the bearish move is valid today, with daily MA’s and momentum indicating a move to the downside. On the otherhand, a break above 1.5130 , breaking the resistace line with a seriies of higher lows, could keep the pair bid above 1.5100 for the time being. Next resistance is 1.5170. Near term support is at the pivot point 1.5080 before 1.5035 and key support plays out at 1.4995. Target is sighted for 1.4830 (March 2013 and 2009 Low).

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