GBP/USD Succumbs to Broad Based USD Rally
GBP/USD took out 1.42 handle in early Asia and now trades around 1.4125 levels as US dollar continues to gain ground across the board.
Surrenders weekly gains
As
of now the spot is trading largely unchanged on the week. Pair rose to a
high of 1.4348 levels earlier this week after UK data showed CPI rose
at a faster-than-expected rate. However, demand for dollar spiked after
Fed officials talked about a possibility of faster rate hike, while
china data triggered risk-on rally in equities.
The focus today
is on Bank of England rate decision and minutes release. It is worth
noting that BOE H1 2016 rate cut bets have increased to 33% from the
February survey which had put probability at 10%.
GBP/USD Technical Levels
The
immediate hurdle is noted at 1.4178 (hourly 200-MA), above which prices
may attempt to cut through 1.42 (zero figure + hourly 100-MA). A
violation there would expose 1.4233 (hourly 50-MA). On the other hand, a
break below 1.41 would expose 1.1079 (Jan 21 low) and 1.1032 (23.6% of
1.4669-1.3835).
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