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GBP/USD: Upside capped by 1h 50-MA, BOE eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The GBP/USD pair sold-off yen another attempt towards hourly 50-SMA placed at 1.4432 and drifted a tad lower as traders remain on the backfoot ahead of the BOE’s ‘Super Thursday’.

    GBP/USD holds above 1.44 handle

    The GBP/USD pair trades almost unchanged at 1.4411, retreating quickly from fresh session highs posted at 1.4424 few minutes ago. The cable surrenders gains and once again pushes towards 1.44 handle as the ongoing weakness in the European stocks curbs investors’ appetite for riskier currencies such as the GBP.

    While the cable remains supported on the back of a renewed bout selling interest seen around the greenback against its six major rivals. The US dollar index now drops to fresh session lows of 99.82, down -0.10% versus a 0.16% rise seen earlier today.

    Moreover, markets refrain from placing big bets on the GBP/USD ahead of the BOE rate decision and minutes due to be published later this session. The BOE policy makers are expected to vote 8-1 in favour of keeping rate unadjusted at record low of 0.50% as also the asset purchases program unchanged.

    GBP/USD Levels to consider

    The pair has an immediate resistance at 1.4468 (5-DMA), above which 1.4491/1.4500 (1h 100-SMA/ round number) would be tested. On the flip side, support is seen at 1.4378 (Jan 13 Low) below which it could extend losses to towards 1.4350 (Jan 12 Low).
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