GBP/USD dips further to 1.5230

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The sterling is now accelerating its daily decline vs. the greenback, relegating GBP/USD to trade in 3-week lows near 1.5230.

    GBP/USD much weaker post-Carney, BoE

    The pound has been hammered as the BoE has removed any hopes of an early rate hike at today’s meeting. The central bank has also revised lower its forecasts for both inflation and economic growth in the UK, and it now expects consumer prices to reach the target level within two years, while the first rate hike is now seen in early 2017.

    It is worth noting that the BoE left unchanged its monetary stance, with the refi rate at 0.5% and the asset purchase facility at £375 billion. MPC member Ian McCafferty has once again voted for a 25 bp hike.

    GBP/USD levels to watch

    At the moment, the pair is down 1.01% at 1.5228 with the immediate support at 1.5198 (low Oct.13) ahead of 1.5160 (low Sep.4) and then 1.5106 (low Oct.1). On the other hand, a break above 1.5448 (61.8% Fibo of 1.5659-1.5106) would open the door to 1.5478 (downtrend from 1.5820) and finally 1.5513 (high Oct.15).
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