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GBP/USD back below 1.42 as Carney plays down rate hike bets

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The GBP/USD is revisiting daily lows below 1.42 after the Bank of England’s (BOE) Carney said the conditions for a rate hike are not yet in place.

    Hovers around 1.4185

    The spot now trades around 1.4185. Sterling had dipped to a low of 1.4173 earlier today, before quickly moving back to 1.4210. However, the recovery ran into fresh offers after Carney played down the rate hike bets during his testimony to lawmakers.

    Consequently, the pair fell back below 1.42 handle. Ahead in the day, the broader market sentiment and The US services and composite PMI figures could influence the pair.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4215 (5-DMA), which if taken out shall open doors for a rally to 1.4259 (10-DMA). A break higher could see the spot test supply at 1.4351 (23.6% of 1.5230-1.4079). On the other hand, a break below 1.4173 (daily low) could send the pair lower to 1.4129 (Jan 19 low), which it taken out shall open doors for a drop to 1.4079 (Jan 21 low).
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