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9 Sep 2015
GBP/USD: BoE preview; doves will expose 1.5315 - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet noted the BoE tomorrow and conditions surrounding GBP/USD.
Key Quotes:
"The GBP/USD pair has been clearly reflecting the poor macroeconomic releases, declining over 650 pips during before finally finding some demand in the mid 1.51 region. The following rally however, has stalled at 1.5410, the 38.2% retracement of the latest decline. A generally hawkish stance from Carney, and a similar, or better MPC voting on the upcoming highs, should see the pair breaking through the Fibonacci resistance, and extending towards the 1.5490 level in the short term, the 50% retracement of the same rally.
If Carney is however dovish, with no mentions to a sooner rate hike and all of the MPC members decided to keep the current policy on hold, the GBP/USD pair will likely break below 1.5315, the 23.6% retracement of the same rally, and extend down to 1.5250, a strong static support area."
Key Quotes:
"The GBP/USD pair has been clearly reflecting the poor macroeconomic releases, declining over 650 pips during before finally finding some demand in the mid 1.51 region. The following rally however, has stalled at 1.5410, the 38.2% retracement of the latest decline. A generally hawkish stance from Carney, and a similar, or better MPC voting on the upcoming highs, should see the pair breaking through the Fibonacci resistance, and extending towards the 1.5490 level in the short term, the 50% retracement of the same rally.
If Carney is however dovish, with no mentions to a sooner rate hike and all of the MPC members decided to keep the current policy on hold, the GBP/USD pair will likely break below 1.5315, the 23.6% retracement of the same rally, and extend down to 1.5250, a strong static support area."