16 Feb 2015
GBP/USD: Meets supply at 20 DMA on minor correction
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5380 with a high of 1.5443 and a low of 1.5366.
GBP/USD has been held up at the 20 DMA and aforementioned highs on a bout of demand stemming from the fact that UK assets still offer some yield coupled with assurances from BoE Governor Carney that the Bank will look through disinflation pressures on the basis that low commodity prices is good for growth should lend the pound support, as noted by analysts at Rabobank.
Technically, analysts at RBS explained that the market gained a new support at the 1.5198 level after bouncing from the 1.4970 key support, being the 76.4% retracement from 2001 – 2004 impulse wave. "We were expecting the pair to form a local base there with further near-term recovery towards 1.5600 remaining on the table."
GBP/USD has been held up at the 20 DMA and aforementioned highs on a bout of demand stemming from the fact that UK assets still offer some yield coupled with assurances from BoE Governor Carney that the Bank will look through disinflation pressures on the basis that low commodity prices is good for growth should lend the pound support, as noted by analysts at Rabobank.
Technically, analysts at RBS explained that the market gained a new support at the 1.5198 level after bouncing from the 1.4970 key support, being the 76.4% retracement from 2001 – 2004 impulse wave. "We were expecting the pair to form a local base there with further near-term recovery towards 1.5600 remaining on the table."