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GBP/USD continues to lose ground

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Having breached 50-DMA support at 1.4250, cable extended losses further to a session low of 1.4218 before recovering slightly to trade around 1.4235 levels.

    BOE rate cut bets rise

    The bird is volatile off late on account of Brexit fears. Plus, BOE H1 2016 rate cut bets have increased to 33% from the February survey which had put probability at 10%. This is adding to the bearish pressure around Sterling ahead of tomorrow’s BOE meeting.

    The central bank is not seen raising rates, but markets could be preparing for a possible dovish talk ahead of June 23 referendum.

    GBP/USD Technical Levels

    The immediate resistance seen at 1.4250 (50-DMA)), if breached, shall open doors for 1.4330 (23.6% of 1.5930-1.3835) beyond which previous daily high of 1.4348 could be put to test. On the other hand, acceptance below 1.42 would indicate a possibility of a drop to 11.4154 (38.2% of 1.4669-1.3835). Next major support is noted at 1.4079 (Jan 21 low).
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