OctaFX | OctaFX Forex Broker
Open trading account

Forex: GBP/USD trapped around 1.5110/20

The sterling continues its march north on Monday, advancing above the key level at 1.5100, as investors continue to digest the UK’s sovereign debt≠≠≠ downgrade by agency Moody’s.

Lee Hardman, Currency Analyst at BTMU, commented, “With fiscal policy set to remain tight, the burden to stimulate growth remains upon the BoE through looser monetary policy, and a weak/weaker pound”. The analyst added that a fragile external demand could hamper any support from a weak GBP, and these efforts could echo in higher inflation, affecting real incomes and consumption.

As of writing, GBP/USD is up 0.09% at 1.5108 facing the next resistance at 1.5330 (high Feb.22) ahead of 1.5393 (MA10d) and finally 1.5452 (high Feb.20).
On the downside, a breach of 1.5073 (hourly low Feb.25) would bring 1.4949 (low Jul.12 2010) en route to 1.4873 (low Jul.1 2010).

Euro driven by elections' headlines

Even though the euro started the week on a firm note, the shared currency surrendered all gains during the New York session as trading has been mainly driven by headlines over the Parliamentary elections in Italy.
Read more Next
Start livechat