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GBP/USD drops further, on its way to 1.4050?

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The sterling is now intensifying its decline, sending GBP/USD back below the 1.4100 mark, or fresh daily lows.

    GBP/USD weaker post-BoE, eyes 1.4050

    The earlier bullish attempt has run out of legs in the 1.4150/60 band, triggering the current leg lower in response to a pick up in the demand for the greenback and an innocuous stance from Governor Carney and MPCs Weale and Shafik at their testimony in today’s Inflation Report Hearings.

    GBP picks up further selling pressure after Governor Carney said the central bank has been engaged in contingency plans for ‘Brexit’, while he stressed there is still considerable room available in case the economy needs more stimulus.

    GBP/USD levels to consider

    As of writing the pair is retreating 0.58% at 1.4065 and a break below 1.4058 (low Feb.22) would expose 1.4000 (psychological level) and then 1.3931 (monthly low July 2001). On the upside, the next resistance lines up at 1.4298 (high Feb.22) followed by 1.4393 (20-day sma) and finally 1.4509 (38.2% Fibo of 1.5240-1.4058).
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