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GBP/USD remains below 1.53 on dovish BoE

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The pound remains on the defensive camp today, relegating GBP/USD to multi-day lows in the 1.5280 region.

    GBP/USD weaker ahead of Carney

    The pair has reacted adversely to a steady stance by the BoE and a dovish set of minutes at today’s meeting, where MPC members have repeated its 8-1 vote in favour of leaving the refi rate at 0.5% and the asset purchase programme at £375 billion.

    Furthermore, the MPC has shown no rush in hiking rates (Ian McCafferty voted for a 25 bp hike), now assuming the first rate hike in early 2017. In its Quarterly Inflation Report, the ‘Old Lady’ has revised lower its inflation and growth projections, and it now expects consumer prices to advance above target at some point in late 2017.

    GBP/USD levels to watch

    At the moment, the pair is down 0.65% at 1.5284 with the immediate support at 1.5236 (23.6% Fibo of 1.5659-1.5106) ahead of 1.5231 (6-month uptrend) followed by 1.5198 (low Oct.13). 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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