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GBP/USD slips further, testing 1.4390

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 13, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The selling pressure around the sterling is now gathering further steam, sending GBP/USD to break below the 1.4400 support once again.

    GBP/USD weaker ahead of BoE

    Market participants have cashed up the earlier bullish attempt to the 1.4480 area, allowing the current leg lower to levels below the 1.4400 handle. Chinese-led better tone in the risk appetite trends, albeit positive for the risk-associated universe, has failed to ignite a more sustainable recovery of GBP, leaving it to the mercy of the broader bearish scenario surrounding the pound.

    Next on tap for the pair will be tomorrow’s BoE’s ‘Super-Thursday’. Market consensus expects the interest rate and the asset purchase facility to remain unchanged at 0.5% and £375 billion, respectively, while the MPC minutes are seen on the dovish side.

    GBP/USD key levels

    The pair is now losing 0.33% at 1.4392 and a breakdown of 1.4352 (low Jan.12) would expose 1.4346 (low Jun.8 2010) and then 1.4229 (2010 low May 20). On the flip side, the next resistance aligns at 1.4739 (20-day sma) followed by 1.4947 (high Dec.24) and finally 1.5012 (55-day sma).
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