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Aug 18, 2014
GBP/USD starts bullish on BoE's Carney headlines
FXStreet (Bali) - GBP/USD is correcting higher in early trade, posting a session high of 1.6730 before retracing towards 1.6715 following some hawkish headlines by BoE's Governor Carney over the weekend.
Carney threw some cold water to those getting too bearish on the British Pound, by saying that the BoE would not necessarily wait for real wages to turn positive before starting to hike rates.
From an order flow perspective, the headlines have the potential to kick-start an intraday recovery in the Cable, with some considerable void area to be filled before finding too much selling interest towards the 1.68-6850, area where the latest big sell-off originated. If a pick up in prices is seen, given the sustained selling seen in recent weeks, it will probably be perceived as an opportunity to short, with the main downside target found towards the 1.66 round number, next key demand.
Carney threw some cold water to those getting too bearish on the British Pound, by saying that the BoE would not necessarily wait for real wages to turn positive before starting to hike rates.
From an order flow perspective, the headlines have the potential to kick-start an intraday recovery in the Cable, with some considerable void area to be filled before finding too much selling interest towards the 1.68-6850, area where the latest big sell-off originated. If a pick up in prices is seen, given the sustained selling seen in recent weeks, it will probably be perceived as an opportunity to short, with the main downside target found towards the 1.66 round number, next key demand.