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GBP/USD dips below 1.41 and quickly recovers

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 pair fell to an intraday low of 1.4173 before quickly recovering losses to trade just above 1.41 ahead of BOE’s Carney speech.

    Eyes Carney’s testimony

    Carney’s testimony to lawmakers is due in an hour. Traders will be eyeing Carney’s comments on interest rate, inflation and labor market. The odds of dovish comments are high, given the weak economic data releases in last few months.

    Across the pond, the US services PMI and composite PMI are due for release later today and may influence the pair.

    GBP/USD Technical Levels

    The spot currently trades around 1.4205. 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).
    For more information, read our latest forex news.
     

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