9 Jul 2015
GBP/USD shoots beyond 1.5400, BOE – In focus
FXStreet (Mumbai) - The British pound reversed downside momentum and rebounded sharply higher versus the US dollar in the early European trades, boosting GBP/USD beyond 1.54 handle. The cable jumped higher as the US dollar halted its recovery and fell back in red ahead of Europe open while markets now await BOE decision for fresh cues.
BOE Meeting – Key event
The GBP/USD pair trades 0.35% higher at fresh session highs of 1.5414. The major bounced-off fresh monthly lows reached at 1.5328 and rebounded higher largely as risk-on moods return to markets amid stabilizing China stocks while markets continue to watch Greece updates.
Moreover, boosting the GBP/.USD pair further, the US dollar lost ground once again and turned into the negative territory against its major peers. The dollar index which measures the greenback’s strength against its major peers, now trades -0.13% lower at 96.25.
Markets now focus on the Bank of England’s (BOE) rate and QE announcement later today. It is very likely the central bank will leave its monetary policy stance unchanged in July – the base rate will stay at the record low of 0.5% and the QE volume at £375 billion.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5414 (Today’s High) above which gains could be extended to 1.5468 (July 8 High) levels. On the flip side, support is seen at 1.5357 (Today’s Low) below which it could extend losses to 1.5328 (July 8 Low) levels.
BOE Meeting – Key event
The GBP/USD pair trades 0.35% higher at fresh session highs of 1.5414. The major bounced-off fresh monthly lows reached at 1.5328 and rebounded higher largely as risk-on moods return to markets amid stabilizing China stocks while markets continue to watch Greece updates.
Moreover, boosting the GBP/.USD pair further, the US dollar lost ground once again and turned into the negative territory against its major peers. The dollar index which measures the greenback’s strength against its major peers, now trades -0.13% lower at 96.25.
Markets now focus on the Bank of England’s (BOE) rate and QE announcement later today. It is very likely the central bank will leave its monetary policy stance unchanged in July – the base rate will stay at the record low of 0.5% and the QE volume at £375 billion.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5414 (Today’s High) above which gains could be extended to 1.5468 (July 8 High) levels. On the flip side, support is seen at 1.5357 (Today’s Low) below which it could extend losses to 1.5328 (July 8 Low) levels.