GBP/USD Recedes to 1.4450 as Carney’s Presser Gets Underway

GBP/USD Recedes to 1.4450 as Carney’s Presser Gets Underway

12 May 2016, 14:31
Roberto Jacobs
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GBP/USD Recedes to 1.4450 as Carney’s Presser Gets Underway

The GBP/USD pair gave back almost entire BOE-led gains and now trades modestly flat, reacting to the cautious remarks delivered by the BOE Governor Carney at the BOE press conference.

GBP/USD back to square one

The cable is seen defending mild gains, reversing a knee-jerk spike to 1.4496 levels after the pound received a fresh boost from the BOE’s MPC statement, noting that the central bank remains confident that irrespective of the consequences of the EU referendum, the inflation expectations remain well anchored.

However, the major now trims gains as markets assess the comments on Brexit from BOE Governor Mark Carney as he responds to the Q & A session at press conference.

Looking ahead, the outcome of the BOE events will continue to drive the flows around the GBP/USD pair ahead of the US jobless claims and Fed speeches due later in the American session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4496/1.4500 (post-BOE high/ round number), above which 1.4550 (psychological levels) would be tested. On the flip side, support is seen at 1.4400 (round number) below that at 1.4349/47 (100-DMA/ daily S2).


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