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Forex pairs in this Article » GBP/USD (Barcelona) - Having steadily declined throughout both the overnight and European sessions, GBP/USD has pushed below 1.5500, to post a low at 1.5487.

GBP/USD led lower by flight to quality as Syrian strike draws closer

The pair, currently trading at 1.5498 and down -0.31% on the day, posted an overnight higher at 1.5552, before selling off sharply on Syrian concerns and BoE anticipations. European data today has been generally mixed in sentiment, and largely overshadowed by the global and domestic issues at hand. The dip below the key 1.5500 level has seen the pair find near term support at the classic daily S1 pivot support above 1.5488.

BoE Governor Carney is scheduled to speak at 11:45 GMT and Investec Treasury Strategist Lee McDarby writes, “Carney is expected to defend his forward guidance policy as markets remain unconvinced that the policy will keep rates low. Recall that since the announcement UK 10 year gilt yields have rallied 40bp to 2.80%, the highest level in two years, whilst the pound has also strengthened, amounting to a tightening of monetary conditions which was the opposite of the intended effect. Carney is expected to use today as an opportunity to counter market expectations of tighter monetary policy to come by reemphasising the mantra of ‘low rates for longer’.

GBP/USD technically bearish?

The Trend Index is showing the pair to be strongly bearish while the OB/OS Index is neutral. Daily classic pivot support can be found at 1.5488, 1.5429 and 1.5376, while resistance can be found above at 1.5600, 1.5653 and 1.5712. Hourly oscillators are in oversold territory, with RSI at 30 and Stochastics at 17.
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