Back
6 Aug 2015
GBP/USD wobbles below 1.55 on Carney
FXStreet (Edinburgh) - After testing fresh lows near 1.5470, GBP/USD has recovered some ground and it has now returned to the 1.5500 neighbourhood.
GBP/USD still weaker on dovish BoE
The offered tone around the pair has gained traction today following an unexpected dovish tone from the BoE meeting and subsequent minutes. One of the main disappointments amongst traders was the 8-1 voting pattern – with only MPC McCafferty voting for a rate hike – as expectations were pointing to at least two votes favouring a rate hike.
In his speech today, Governor M.Carney has stressed that a rate hike is closer and that subsequent hikes will be gradual. He also sees the recent pick up in productivity as positive for the ongoing recovery.
GBP/USD levels to watch
At the moment the pair is losing 0.69% at 1.5492 and a breakdown of 1.5467 (low Aug.6) would open the door to 1.5391 (low Jul.10) and then 1.5330 (low Jul.8). On the upside, the initial hurdle lines up at 1.5639 (high Aug.6) ahead of 1.5690 (high Jul.29) and finally 1.5734 (high Jul.1).
GBP/USD still weaker on dovish BoE
The offered tone around the pair has gained traction today following an unexpected dovish tone from the BoE meeting and subsequent minutes. One of the main disappointments amongst traders was the 8-1 voting pattern – with only MPC McCafferty voting for a rate hike – as expectations were pointing to at least two votes favouring a rate hike.
In his speech today, Governor M.Carney has stressed that a rate hike is closer and that subsequent hikes will be gradual. He also sees the recent pick up in productivity as positive for the ongoing recovery.
GBP/USD levels to watch
At the moment the pair is losing 0.69% at 1.5492 and a breakdown of 1.5467 (low Aug.6) would open the door to 1.5391 (low Jul.10) and then 1.5330 (low Jul.8). On the upside, the initial hurdle lines up at 1.5639 (high Aug.6) ahead of 1.5690 (high Jul.29) and finally 1.5734 (high Jul.1).