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GBP/USD back above 1.46 on Carney’s slightly hawkish comments

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The GBP/USD pair saw a sharp recovery from the daily lows after BOE’s Carney, at the press conference, said all BOE members see rate hike as the next likely move.

    Markets surprised by slightly less dovish BOE

    The shift in vote split to 9-0, downward revision of the inflation and GDP forecasts was pretty much as expected. Carney also repeated that his view - now is not the time to raise rates – which has been priced-in by the markets.

    However, markets were caught off guard by his comments that all members see rate hike as the next move. This single handedly made Carney and BOE appear slightly less dovish, leading to a recovery in the pair from 1.4529 to 1.5625 levels.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4649 (previous day’s high), which if taken out shall open doors for a rally to 1.4712 (50-DMA). On the other hand, a break below 1.46 would open doors for a slide to the support zone of 1.4519-1.4515 (38.2% of 1.5230-1.4079 + 23.6% of 1.4079-1.4649).
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