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GBP/USD breaches 2010 lows after Carney

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - GBP/USD came under further pressure and broke below 2010 lows after BoE Governor Carney said is not the time to raise rates.

    In a speech in London, Carney said the UK economy isn't yet ready for an increase in interest rates, amid slower growth and low price pressures. He however added that increase in borrowing costs may occur before inflation hits 2%.

    GBP/USD fell nearly 100 pips after comments and fell below 1.4229 for first time since May 2010 to hit its lowest level since March 2009 at 1.4206. At time of writing, the pair is trading at 1.4220, 0.15% below its opening price.

    The pound has been under broad pressure, having lost more than 10 cents against the greenback over the last month amid concerns of a slower recovery in the UK, divergence monetary outlooks and uncertainty surrounding a possible Brexit.

    GBP/USD levels to watch

    On the downside, next supports are seen now seen at 1.4200 (psychological level) and then 1.4110 (Mar 30 2009 low). On the flip side, immediate resistances could be found at 1.4339 (Jan 19 high), 1.4400 (psychological level) and 1.4426/29 (Jan 15 high10-day SMA).
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