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Forex pairs in this Article » GBP/USD
FXstreet.com (London) - GBP/USD has continued descending lower and reached 1.5027 overnight.

GBP/USD dropped around 40 pips in a single 30 min stick on the open of Asian markets. The pair is opening European markets in negative territory at 1.5045, 240 pips lower than yesterdays pre BoE levels. Carney’s first meeting made no changes to policy, although it came accompanied with a statement. In that statement, he explained that recent market rate rises were not warranted, and in fact there could even be a change in policy as early as August. There seems to be a BoE that is moving towards a form of forward guidance. We will here more on the 17th July from the inflation report and the BoE minutes, as the statement was rather vague.

GBP/USD risk event and levels

Today, among the risks today are US markets returning from 4th July holidays and digesting this news, just as Asia had done so on the drop. Then, attention will be paid to the NFP’s that comes in the afternoon. The Feds forward guidance centers around the labour market developments at present and the market will be looking for a strong report to keep the expectation of first tapering of the Feds QE programme alive. Levels to the downside are 1.5000, 1.4975, 1.4935, 1.4875. The range is between 1.5300 and 1.4830. Oversold readings will come into play much below 1.5000, but leaves the risk open to the March Low, 1.4832.
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