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GBP/USD corrects lower to test NY low, BOE in focus

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/USD pair extends its retreat from four-week highs into early Europe and now looks to test NY low amid profit-taking spree ahead of BOE’s ‘Super Thursday’.

    GBP/USD drops to hourly 20-DMA

    The GBP/USD pair drops -0.22% at 1.4571, hovering close to fresh session lows struck at 1.4568 last minutes. The cable is seen reversing a part of yesterday’s extensive rally as the US dollar gradually picks-up pace across the board, while the pause in the oil price rally also weighs on the sentiment around the pound.

    Moreover, markets prefer to lock-in gains ahead of the crucial BOE’s policy decision and the quarterly inflation report, which may trigger renewed sell-off in the cable. The main focus will remain on the bank’s inflation report and Governor Carney’s speech at the press conference, as markets look for cues on the timing of the BOE rate lift-off.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4600 (round number), above which 1.4653 (multi-week highs) would be tested. On the flip side, support is seen at 1.4540 (daily pivot) below which it could extend losses to towards 1.4476 (Jan 13 High).
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