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GBP/USD flat-lining near 1.5770

FXStreet (Edinburgh) - The sterling is trading almost unchanged vs. the greenback today, taking GBP/USD to navigate within a narrow range around 1.5770/75.

GBP/USD depressed by BoE

The demand for the GBP remains depressed after market participants now perceive that the hiking cycle in the UK economy might start later than previously estimated, according to appreciations by Governor M.Carney in yesterday’s Quarterly Inflation Report. The pair tumbled to levels last seen in August 2013 around the 1.5770 neghbourhood in response to the BoE, keeping those levels at the moment. In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “sold off after the BOE inflation report. It is under pressure and has started to erode the 1.5781 38.2% retracement of the move from 2008. This leaves support at 1.5751/1.5721 exposed, the June high and 61.8% retracement of the move from 2013 and the 1.5780 38.2% retracement of the entire move from 2008”.

GBP/USD levels to consider

At the moment the pair is down 0.06% at 1.5774 with the immediate support at 1.5722 (61.8% of 1.4814-1.7192) ahead of 1.5700 (psychological level) and finally 1.5686 (low Sep.10 2013). On the other hand, a break above 1.5840 (hourly high Nov.12) would open the door to 1.5924 (10-d MA) and then 1.5940 (hourly high Nov.12).

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