16 Feb 2016
GBP/USD weak in Asia, BOE McCafferty comments weigh
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).
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).