GBP/USD Volatile Below 1.4600 Post-BOE Carney
Having spiked just ahead of 1.46 handle post BOE MPF annual report release, the GBP/USD pair slipped back below the last, falling as low as 1.4565, before recovering ground last minutes.
GBP/USD re-takes 1.4600?
Currently, GBP/USD jumps +0.70% to 1.4585, bouncing-off a brief dip to
1.4566 levels post-BOE event. The cable jolted higher and tested 1.46
barrier after the BOE Governor and several MPC members’ testimony before
the Parliament's Treasury Select Committee got underway.
However, the major failed to keep 1.46 handle and dropped nearly 40-pips as markets digest testimony from the BOE Governor Carney,
where he commented on the impact of Brexit, although sounded confident
that BOE can ultimately achieve monetary stability whether UK is in EU
or out of its membership, which kept the downside cushioned in GBP/USD.
In the day ahead, the testimony from the BOE officials on the UK’s
economic and inflation outlook will continue to waver in the investors’
minds, as the US new home sales data is expected to have limited impact
on the major.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.4600/01 (round number/ daily
top), above which 1.4650 (psychological levels) would be tested. On the
flip side, support is seen at 1.4483/81 (10 & 20-DMA) below that at
1.4430/00 (daily S1/ May 18 Low).
