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Forex pairs in this Article » GBP/USD (Edinburgh) -The selling interest around the sterling keeps pushing the GBP/USD lower, on its way to test weekly lows below 1.6150.

GBP/USD capped by 1.6250

The solid advance of the pair seems to have found a tough barrier in the area of 1.6250, showing signs of exhaustion and sparking a correction lower of more than one big figure to the current area around 1.6140/45. According to the research team at HSBC, “Without a more meaningful acceleration in GDP, the BoE is likely to assume the output gap will remain negative and allow the bank rate to be kept on hold for longer than the market is currently pricing… We think a shift lower in interest rate expectations will be matched by a push lower in GBP”.

GBP/USD levels to consider

At the moment the pair is losing 0.09% at 1.6140 with the immediate support at 1.6117 (MA200h) followed by 1.6109 (MA10d) and then 1.6100 (low Sep.30). On the flip side, a breakout of 1.6240 (high Oct.3) would open the door to 1.6252 (high Oct.2) and finally 1.6260 (high Oct.1).
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