14 Jan 2016
GBP/USD struggles to extend gains above 1.44
FXStreet (Mumbai) - The GBP/USD pair is having a tough time extending gains above 1.44 after moving around the psychological figure in the Asian session.
800-pip fall in one month
The sell-off in the Sterling began on Dec 14th when it traded at 1.52 levels. Since then, the cable has been offered heavily on declining prospects of the Bank of England (BOE) rate hike in 2015. The weak UK economic data released in last one month only added fuel to the fire.
The focus today is on the BOE rate decision and the minutes. The markets do not expect a change in the interest rate or a major shift in the BOE policy stance.
GBP/USD Technical Levels
At 1.4410, the spot faces immediate resistance at 1.4438 (hourly 50-MA), above which the technical recovery could be extended to 1.4494 (hourly 100-MA). On the other side, a break below the daily low of 1.4390 would open doors for a re-test of 1.4372 (76.4% of Jan 2009 low-July 2014 high).
800-pip fall in one month
The sell-off in the Sterling began on Dec 14th when it traded at 1.52 levels. Since then, the cable has been offered heavily on declining prospects of the Bank of England (BOE) rate hike in 2015. The weak UK economic data released in last one month only added fuel to the fire.
The focus today is on the BOE rate decision and the minutes. The markets do not expect a change in the interest rate or a major shift in the BOE policy stance.
GBP/USD Technical Levels
At 1.4410, the spot faces immediate resistance at 1.4438 (hourly 50-MA), above which the technical recovery could be extended to 1.4494 (hourly 100-MA). On the other side, a break below the daily low of 1.4390 would open doors for a re-test of 1.4372 (76.4% of Jan 2009 low-July 2014 high).