4 Jul 2013
GBP/USD dumps to 1.5104 on BoE
FXstreet.com (London) - GBP/USD has dumped an initial 150 pips as BoE leaves rates unchanged at 0.5%, confirming a benign outlook for the economy.
GBP/USD had benefitted from a surprise set of PMI yesterday, which had reversed sentiment while marking the pound as the best performer overall. However, this immediate price action reminds us of the fundamentals. Nevertheless, Carneys own views will become clearer in the Minutes later on in the month, 17th July, and post the inflation report.
GBP/USD range 1.5104 / 1.5325
There had been a bias for the near term at least to the upside with bullish UK data and for a push higher towards 1.5350/75, however evidently and more broadly speaking, the pair remains caught in a bear trend. With a faster improving US economy and a potentially higher yielding placement in 2yr treasuries, fundamentals persist. Resistances to the top side within the range come as 1.5285, 1.5305/10, 1.5350 and 1.5375. Strong support is now the figure 1.5100, and a break below opens up previos territory and June lows.
GBP/USD had benefitted from a surprise set of PMI yesterday, which had reversed sentiment while marking the pound as the best performer overall. However, this immediate price action reminds us of the fundamentals. Nevertheless, Carneys own views will become clearer in the Minutes later on in the month, 17th July, and post the inflation report.
GBP/USD range 1.5104 / 1.5325
There had been a bias for the near term at least to the upside with bullish UK data and for a push higher towards 1.5350/75, however evidently and more broadly speaking, the pair remains caught in a bear trend. With a faster improving US economy and a potentially higher yielding placement in 2yr treasuries, fundamentals persist. Resistances to the top side within the range come as 1.5285, 1.5305/10, 1.5350 and 1.5375. Strong support is now the figure 1.5100, and a break below opens up previos territory and June lows.