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GBP/USD turns volatile ahead of Carney speech

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bears made their presence felt by pushing the GBP/USD pair to a session low of 1.4228 ahead of BOE Carney’s speech before fresh bids pushed it back to 1.4250 levels.

    Carney to come out dovish

    BOE’s Carney is widely expected to show a greater willingness to further delay its normalization cycle during his speech on the UK’s EU-membership. The bank has started preparing for the June 23 referendum. It announced liquidity operations yesterday to be held around June 23 in order to ensure healthy liquidity in the banking system.

    Carney is likely to set the tone ahead of tomorrow’s UK industrial production release, which could point to contraction as indicated by PMI figure released last week.

    GBP/USD Technical Levels

    The immediate support is seen at 1.4195 (5-DMA), under which the pair could drop to 1.4134 (previous day’s low). If penetrated the pair could slide to 1.4079 (Jan 21 low). On the other hand, a break above 1.4295 (falling trend line resistance) shall open doors for 1.4330 (23.6% of 1.5930-1.3835). A break higher would expose 1.44 handle.
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