6 Feb 2014
Flash: GBP/USD: in the hands of forward guidance – FXStreet
FXStreet (Córdoba) - Ahead of BOE's monthly economic decision, Valeria Bednarik, chief analyst at FXStreet notes that the GBP/USD maintains the bearish tone of the past two weeks.
Key Quotes
"The Central Bank is expected to keep its benchmark lending rate unchanged at 0.50% and maintain the size of its asset purchase program at 375B, while a statement will be conditioned to the possibility of introducing changes. If Carney decides to clarify or change its forward guidance, then there could be a statement following the decision and therefore, some action in GBP crosses. Main focus in that case, will be any explanation on whether tightening will become, considering latest improvement in the UK economic conditions".
"As for the technical outlook, the GBP/USD 4 hours chart shows 20 SMA capping the upside currently around 1.6310, while indicators turn slightly south around their midlines. Recent highs around 1.6340 are the key level to break to confirm some upward recovery towards the 1.6400 area, while 1.6250 is the main support: a price acceleration below it should lead to a stronger bearish run, eyeing then the 1.6170 price zone".
Key Quotes
"The Central Bank is expected to keep its benchmark lending rate unchanged at 0.50% and maintain the size of its asset purchase program at 375B, while a statement will be conditioned to the possibility of introducing changes. If Carney decides to clarify or change its forward guidance, then there could be a statement following the decision and therefore, some action in GBP crosses. Main focus in that case, will be any explanation on whether tightening will become, considering latest improvement in the UK economic conditions".
"As for the technical outlook, the GBP/USD 4 hours chart shows 20 SMA capping the upside currently around 1.6310, while indicators turn slightly south around their midlines. Recent highs around 1.6340 are the key level to break to confirm some upward recovery towards the 1.6400 area, while 1.6250 is the main support: a price acceleration below it should lead to a stronger bearish run, eyeing then the 1.6170 price zone".