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GBP/USD collapses to 1.4370, focus on BoE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The offered tone in the pound is picking up further pace today, with GBP/USD is now sinking to fresh lows around 1.4370.

    GBP/USD weaker ahead of BoE

    The pair has quickly reversed the uptick above the 1.4400 handle seen in early trade, now intensifying its decline to the 1.4370/65 band ahead of the BoE’s ‘Super-Thursday’.

    Market bets see the ‘Old Lady’ keeping intact its monetary status quo at its meeting today. However, the minutes are expected on the dovish side, as the ongoing weakness around GBP, the lack of inflationary pressures via wages and a deteriorating outlook for the UK economy are poised to weigh on MPC members.

    GBP/USD key levels

    The pair is now losing 0.43% at 1.4371 and a breakdown of 1.4352 (low Jan.12) would expose 1.4346 (low Jun.8 2010) and then 1.4229 (2010 low May 20). On the flip side, the next resistance aligns at 1.4583 (downtrend from 1.5232) ahead of 1.4714 (20-day sma) and finally 1.4947 (high Dec.24).
    For more information, read our latest forex news.
     

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