30 Jul 2013
GBP/USD keeps falling, around 1.5230
FXstreet.com (Edinburgh) -The sterling is intensifying its intraday decline on Tuesday, dragging the GBP/USD to test fresh 2-week lows in the area of 1.5230/35.
GBP/USD vulnerable ahead of FOMC, BoE
The pair would remain under pressure via the greenback initially, as the FOMC statement is due tomorrow. Despite today’s better performance of the USD, market consensus remains divided regarding the tone from the Fed. In light of Thursday’s BoE MPC meeting, Kathleen Brooks, Research Director UK EMEA at Forex.com, attempts three possible scenarios for the sterling post decision: “If a statement is released and it suggests that the BOE will adopt forward guidance although details won’t be released until the Inflation Report, then we could see GBP sell off… If there is a statement and forward guidance is not mentioned this may be GBP positive… If there is no rate cut and no statement this could also be pound positive in the short term”.
GBP/USD critical levels
At the moment the pair is down 0.69% at 1.5235 with the next support at 1.5199 (low Jul.19). On the flip side, a break above 1.5353 (high Jul.30) would expose 1.5416 (high Jul.26) and then 1.5435 (high Jul.25).
GBP/USD vulnerable ahead of FOMC, BoE
The pair would remain under pressure via the greenback initially, as the FOMC statement is due tomorrow. Despite today’s better performance of the USD, market consensus remains divided regarding the tone from the Fed. In light of Thursday’s BoE MPC meeting, Kathleen Brooks, Research Director UK EMEA at Forex.com, attempts three possible scenarios for the sterling post decision: “If a statement is released and it suggests that the BOE will adopt forward guidance although details won’t be released until the Inflation Report, then we could see GBP sell off… If there is a statement and forward guidance is not mentioned this may be GBP positive… If there is no rate cut and no statement this could also be pound positive in the short term”.
GBP/USD critical levels
At the moment the pair is down 0.69% at 1.5235 with the next support at 1.5199 (low Jul.19). On the flip side, a break above 1.5353 (high Jul.30) would expose 1.5416 (high Jul.26) and then 1.5435 (high Jul.25).