GBP/USD
is currently trading at 1.5375 with a high of 1.5446 and a low of
1.5361.
GBP/USD has started to fail in its minor attempts of recoveries
over the last number of days since the end of October's business since it failed
just ahead of 1.5500.
The dollar is back in vogue on the back of a
hawkish Yellen and positive data that puts the December meeting in good light in
respect of a rate hike from the Fed as the US economy continues to outperform
while confidence for reaching the 2% target ion the medium term starts to build.
Meanwhile, we now await the BoE and inflation report as the next key
catalyst for sterling crosses and GBP/USD. Analysts at Investec suggested that,
"“We believe the Bank of England may signal that market rate expectations have
become too dovish, through the inflation forecast, which should lend support to
the Pound bringing 1.42 and 1.55 into range against the Euro and
Dollar.”
GBP/USD levels
Technically, we are now
embarking on the 200 SMA at 1.5341 and a break below with conviction and daily
closes would be troublesome for the bulls as its would confirm a test of the
recovery from July's bear trend at 1.7200 when lows of 1.4564 were made in April
this year.
