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GBP/USD extends post-BOE retreat to 1.4550

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around the GBP keeps growing bigger as we head into the early European trades, now pushing GBP/USD to fresh session lows.

    GBP/USD eyes Thursday’s low

    The GBP/USD pair drops -0.23% and trades near fresh session lows reached at 1.4551 few minutes ago. The cable extended the retreat from post-BOE highs and ran through fresh sellers near 1.4610 region in overnight trades, knocking-off GBP/USD further towards Thursday’s low posted at 1.4527.

    Mixed BOE event that took place yesterday, with the BOE Chief Carney sounding more hawkish, while the lone hawk Ian McCafferty switching sides for no rate hike as seen in the voting composition, left markets unimpressed somewhat. Hence, the cable is witnessing a gradual descent and has almost reversed the entire BOE inspired rally to 1.4667 highs.

    Amid a data-empty UK docket today, attention shifts towards the key US non-farm payrolls data for fresh incentives on the major.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4600 (round number), above which 1.4667 (post-BOE highs) would be tested. On the flip side, support is seen at 1.4527/17 (Feb 4 Low/ 5-DMA) below which it could extend losses to towards 1.4476/67 (Jan 13 High/ 1h 100-SMA).
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