Back
4 Jul 2013
GBP/USD around 5-week lows
FXstreet.com (Edinburgh) - The sterling continues to grind lower on Friday, pushing the GBP/USD to the boundaries of 1.5050 after the BoE stayed on the sidelines in today’s MPC meeting.
GBP/USD hurt after dovish BoE
In his first meeting, Governor Carney commented that recent expectations of a rate hike in the UK economy due to the better results were unwarranted, opening the door for a deep pullback in the pair. Darren Williams, European Economist at AllianceBernstein commented, “the tone of the comments suggests that the Bank may be more willing to support forward guidance with additional policy measures (i.e. more QE) than recent data or MPC minutes would suggest. As such, it is dovish. We expect uncertainty and plenty of scope for volatility ahead of the August MPC meeting”.
GBP/USD levels to watch
At the moment the pair is down 1.31% at 1.5078 and a breach of 1.5060 (low Jul.4) would open the door to 1.5049 (76.4% of 1.4832-1.5753) and finally 1.5008 (low May 29). On the flip side, resistance levels line up at 1.5283 (MA10d) ahead of 1.5305 (high Jul.3) and then 1.5346 (high Jun.27).
GBP/USD hurt after dovish BoE
In his first meeting, Governor Carney commented that recent expectations of a rate hike in the UK economy due to the better results were unwarranted, opening the door for a deep pullback in the pair. Darren Williams, European Economist at AllianceBernstein commented, “the tone of the comments suggests that the Bank may be more willing to support forward guidance with additional policy measures (i.e. more QE) than recent data or MPC minutes would suggest. As such, it is dovish. We expect uncertainty and plenty of scope for volatility ahead of the August MPC meeting”.
GBP/USD levels to watch
At the moment the pair is down 1.31% at 1.5078 and a breach of 1.5060 (low Jul.4) would open the door to 1.5049 (76.4% of 1.4832-1.5753) and finally 1.5008 (low May 29). On the flip side, resistance levels line up at 1.5283 (MA10d) ahead of 1.5305 (high Jul.3) and then 1.5346 (high Jun.27).