GBP/USD hits fresh highs on hawkish BOE and weak US data

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) - A higher-than-expected weekly jobless claims figure in the US and a hawkish BOE helped the GBP/USD pair clock a fresh session high of 1.4668 before falling back to 1.4330 levels.

    What’s next?

    Carney surprised market with his slightly hawkish commentary, the latest one being – the committee did not discuss negative rates or rate cut. Furthermore, the initial jobless claims in the US rose more than expected to 285K. Consequently, the Cable hit a fresh high of 1.4668.

    The focus now is on the overall demand for the USD, which appears weak at the moment. A major action could be seen tomorrow after the payrolls release. After today’s slightly hawkish BOE, the doors are open for the GBP bulls to regain control of the pair if payrolls disappoint.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.4668 (daily high), which if taken out shall open doors for a rally to 1.4712 (50-DMA). On the other hand, a break below 1.46 would open doors for a slide to the support zone of 1.4519-1.4515 (38.2% of 1.5230-1.4079 + 23.6% of 1.4079-1.4649).
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