GBP/USD losing altitude, back to 1.5330 on BoE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The sterling is giving away some of its initial gains vs. the dollar, now sending GBP/USD to the 1.5330 region.

    GBP/USD weaker after BoE

    After hitting fresh tops in the 1.5370 area, spot is now deflating to the 1.5325/20 band following the steady stance from the BoE at its meeting today. Broadly in line with market expectations, the ‘Old Lady’ left both the refi rate and the asset purchase facility at 0.5% and £375 billion, respectively.

    The BoE minutes have shown another 8-1 vote in favour of leaving rates unchanged today, with MPC member Ian McCafferty voting for a 25 bp hike to 0.75%. The minutes have also noted that the stronger GBP has been putting downside pressure on consumer prices while it still remains some spare capacity in the UK economy.

    GBP/USD important levels

    As of writing the pair is up 0.05% at 1.5327 facing the initial resistance at 1.5400 (psychological level) ahead of 1.5443 (Fibo 38.2% of 1.5658-1.5107) and then 1.5510 (100-day sma). On the other hand, a breach of 1.5137 (low Oct.5) would expose 1.5107 (low Oct.1) and then 1.5089 (low May 5).
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