GBP/USD at 2-week lows after Fed statement

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - GBP/USD fell below the 1.5300 mark and printed fresh 2-week lows as the dollar rallied across the board following Fed statement on monetary policy.

    While the Fed decided to stand pat on rates, it kept a 2015 rate hike on the table despite acknowledging the “pace of job gains slowed” and inflation remains below the 2% target. The dollar rose sharply as investors were probably expecting a more dovish tone from the Fed following a series of disappointing economic indicators over the last weeks.

    GBP/USD fell as low as 1.5248 and it was last trading 0.25% down at the 1.5260 area. Cable is staging a pullback from the 1.5500 area where it peaked last week.

    GBP/USD key levels

    On the downside, a decisive break below 1.5248 (Oct 28 low) would pave the way towards 1.5200 (psychological level/Oct 13 low) and then 1.5137 (Oct 5 low). On the upside, there is an area of congestion between 1.5333 and 1.5380 with potential resistances at 1.5333 (200-day SMA), 1.5346 (Oct 28 high), 1.5365 (50-day SMA) and 1.5380 (Oct 26 high).
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