Forex: GBP/USD edges lower during ECB press conference

FXstreet.com (Barcelona) - Despite some initial volatility, GBPUSD has avoided the sharp reaction seen elsewhere as ECB President Draghi's delivered his policy statement and subsequent press conference.

Despite an initial spike lower and its continued bearish momentum, GBPUSD has avoided the sharp moves seen in both EURUSD and USDCHF during the headline event. Spot is currently trading at 1.5683, ahead of support between 1.5650-70 while hourly RSI is dipping lower and currently at 53. In the press conference, Draghi made a point of stating that while he sees upside inflation risks to currency strength, he believes that exchange rates should reflect economic fundamentals and that as an independent institution, the ECB was not under political pressure to embalk on further easing measures. He feels that balance sheet restructuring will continue to weight on growth in the short term, but he is optimistic for medium term prospects.