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Forex pairs in this Article » GBP/USD (Edinburgh) -The pound keeps the upper end of the range on Wednesday, with the GBP/USD hovering over 1.5450 after climbing to the boundaries of 1.5500 the figure.

GBP/USD propped up by BoE

The BoE released its key Quarterly Inflation Report, followed by a speech by Governor M.Carney and a Q&A session. After a deep knee-jerk to test the 1.5200 support, the pair quickly reverted the decline and escalated to the doorsteps of the key resistance at 1.5500. Alistair Cotton, Senior Analyst at Currencies Direct, commented, “The use of explicit intermediary thresholds came as a surprise to the market which was expecting a softer version tied more to a time line than economic variables, driving sterling lower by fifty points in immediate trading… Mr Carney set out the conditions necessary for withdrawal of monetary policy. In practise this means the Bank is covering its back should the economic recovery begin to take shape resulting in the need to raise rates ahead of any threshold conditions being met”.

GBP/USD levels to consider

At the moment the pair is advancing 0.67% at 1.5453 and a break above 1.5500 (psychological level) would open the door to 1.5531 (high Jun.21) and finally 1.5540 (MA200d). On the downside, the initial support aligns at 1.5205 (low Aug.7) followed by 1.5198 (38.2% of 1.5435-1.4814) and then 1.5104 (low Aug.1).
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