GBP/USD weak in Asia, BOE McCafferty comments weigh

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The minor bounce in the GBP/USD pair in Asia ran out of steam as BOE McCafferty’s dovish comments weighed over Sterling.

    Rejected at 1.4457

    The spot turned lower from the Asian session high of 1.4457. Sterling was offered in the NY session after a WSJ article showed BOE’s McCafferty is no longer in favor of a rate hike. Between August and January, Mr. McCafferty was the lone voice for higher borrowing costs on the nine-member panel.

    Ahead in the day, the UK CPI release could influence the pair. Upside in the pair could be restricted by Brexit fears.

    GBP/USD Technical Levels

    The spot currently trades largely unchanged on the day around 1.4433. The immediate support is seen at 1.4413 (previous day’s low), which if taken out shall open doors for a drop to 1.4383 (Feb 11 low). On the other hand, a break above immediate hurdle at 1.4443 (38.2% of 1.4079-1.4668) could see the spot test offers at 1.4493 (hourly 200-MA).
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