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11 Mar 2014
GBP/USD in negative territory
FXStreet (Guatemala) - GBP/USD has been sitting in negative territory after the free-fall from Monday’s business when markets were concerned for the outlook of interest rate cycle when BoE Deputy Governor Beans poke and stated that further pound strength would not be helpful for exports and desired economic rebalancing in the UK.
Then, today, we heard from the BoE in the Inflation Report Hearing. BOE's Carney said that any BOE rate increases will be gradual and limited but went onto say that spare capacity is at the higher end of BOE range adding that any QE exit should only start after several rate increases. BOE's Weale then commented and contradicted that the level of spare capacity in UK may be overstated. Sterling has weakened somewhat since the officials commented on the inflationary outlook for the UK economy as markets listened to their insights as to when and how far rates can start to climb.
GBP/USD Levels
The 20 DMA at 1.6669, the 50 DMA at 1.6537 and the 200 DMA at 1.5987. RSI (14) reads 42.25. Supports are 1.6538, 1.6559, 1.6583 and 1.6617. Spot is 1.6622 while resistances are 1.6666, 1.6706, 1.6750 and 1.6787.
Then, today, we heard from the BoE in the Inflation Report Hearing. BOE's Carney said that any BOE rate increases will be gradual and limited but went onto say that spare capacity is at the higher end of BOE range adding that any QE exit should only start after several rate increases. BOE's Weale then commented and contradicted that the level of spare capacity in UK may be overstated. Sterling has weakened somewhat since the officials commented on the inflationary outlook for the UK economy as markets listened to their insights as to when and how far rates can start to climb.
GBP/USD Levels
The 20 DMA at 1.6669, the 50 DMA at 1.6537 and the 200 DMA at 1.5987. RSI (14) reads 42.25. Supports are 1.6538, 1.6559, 1.6583 and 1.6617. Spot is 1.6622 while resistances are 1.6666, 1.6706, 1.6750 and 1.6787.