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17 Mar 2016
GBP/USD losses steam, falls back to hourly 200-MA
The bullish momentum in the GBP/USD pair ran out of steam around 1.43, pushing the pair back to around hourly 200-MA level of 1.4239 levels.
Eyes BOE rate decision
Sterling traders now await Bank of England rate decision. Bank is unlikely to move rates, but may alter its stance – hawkish/dovish via Fed minutes. The interest rate vote count is seen unchanged at 9-0 and the bank is likely to acknowledge downward revision of the economic forecasts released by the OBR yesterday.
Ahead of the day, Sterling may find it hard to capitalize on dovish Fed if European desks continue to offer GBP on brexit fears.
GBP/USD Technical Levels
The immediate hurdle is seen at 1.4291 (session high), above which the spot could target 1.4330 (23.6% of 1.5930-1.3835). On the other hand, a breakdown of immediate support at 1.4200 would open doors for a slide to 1.4154 (38.2% of 1.4669-1.3835).
Eyes BOE rate decision
Sterling traders now await Bank of England rate decision. Bank is unlikely to move rates, but may alter its stance – hawkish/dovish via Fed minutes. The interest rate vote count is seen unchanged at 9-0 and the bank is likely to acknowledge downward revision of the economic forecasts released by the OBR yesterday.
Ahead of the day, Sterling may find it hard to capitalize on dovish Fed if European desks continue to offer GBP on brexit fears.
GBP/USD Technical Levels
The immediate hurdle is seen at 1.4291 (session high), above which the spot could target 1.4330 (23.6% of 1.5930-1.3835). On the other hand, a breakdown of immediate support at 1.4200 would open doors for a slide to 1.4154 (38.2% of 1.4669-1.3835).