Filed Under:
Forex pairs in this Article » GBP/USD (Edinburgh) -The sterling is losing the grip on Wednesday, dragging the GBP/USD to the vicinity of 1.6150 ahead of the BoE minutes due later.

GBP/USD focus on minutes

The increasing risk aversion today is collaborating in the downbeat sentiment around the pound, as we get closer to the release of the BoE minutes. Market consensus points to a neutral tone from the minutes, in line with the unchanged stance from last MPC meeting. The UK docket includes the preliminary print of the GDP during the third quarter on Friday (1.5% YoY) and a speech by Governor Carney on Thursday. “The unemployment report prior to the Oct meeting showed an unexpected tick lower in the unemployment rate to 7.7%... and we’ll be looking for any hints that the BoE may consider bringing forward its forecast for when the u-rate falls to the threshold level of 7.0%”, suggested Strategist Annette Beacher at TD Securities.

GBP/USD critical levels

As of writing the pair is retreating 0.51% at 1.6152 and a breach of 1.6115 (low Oct.22) would expose 1.6100 (psychological level) and finally 1.6045 (MA10d). On the upside, the first hurdle aligns at 1.6224 (high Oct.18) followed by 1.6240 (high Oct.3) and then 1.6256 (high Oct.22).
comments powered by Disqus