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UK mortgage approval hit 2-year high, GBP/USD stays weak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The GBP/USD failed to respond positive to the Bank of England (BOE) data released just now, which showed UK mortgage approvals hit 2-year high in January.

    Carney’s comments weigh

    BOE’s Carney was on the wires stating monetary policy must remain accommodative and there is a need for a stronger wage and economic growth before any rate hike. Consequently, Sterling failed to respond to data which showed Mortgage approvals jumped to 74,581 in January, the highest level since January 2014.

    Ahead in the day, the Chicago PMI and pending home sales release in the US would be watched out by USD traders. The spot continues to trade around 1.3870 levels.

    GBP/USD Technical Levels

    The immediate resistance is seen at 1.3924 (hourly 50-MA + 76.4% Fibo expansion of July 2014 high-April 2015 low-June 2015 high), above which the pair could make a run at 5-DMA level of 1.40. On the other hand, a break below 1.3841 (daily low) could see the spot test psychological support at 1.38. However, below 1.3841 a major support on the chat is directly seen at 1.3654 (Mar 2009 low).
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