7 Aug 2013
GBP/USD drops to low 1.5205
FXstreet.com (Barcelona) - GBP/USD has dropped from 1.5300 ad reached a low of 1.5205.
GBP/USD has since risen to 1.5270 at the time of the press conference after the inflationary report. Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the Boe will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.
GBP/USD lower
GBP/USD remains consolidated and the 20 dma is 1.5249, the 50 dma 1.5318, and the 200 dma is 1.5542. RSI (9) reads 57.23. Supports are ascending from 1.5200/05, 1.5243, 1.5254, and spot is 1.5270. Resistances are 1.5331, 1.5392, 1.5416, 1.5435 and 1.5480
GBP/USD has since risen to 1.5270 at the time of the press conference after the inflationary report. Carney has said the UK is in the midst of the slowest recovery on record and says GDP will not reach pre crisis peak until next year. Until the Employment target is reached, the BoE do not intend to extend their asset purchases but they are ready for more bond purchases if necessary. He said 7% is not the unemployment rate target, that is likely to be lower but the 7% rate is for appropriate stance for monetary policy. Carney has said that the Boe will link the interest rate to unemployment with 7% threshold. He also said that forward guidance does not mean rates will be low for a particularly long period of time, this depends on economic conditions.
GBP/USD lower
GBP/USD remains consolidated and the 20 dma is 1.5249, the 50 dma 1.5318, and the 200 dma is 1.5542. RSI (9) reads 57.23. Supports are ascending from 1.5200/05, 1.5243, 1.5254, and spot is 1.5270. Resistances are 1.5331, 1.5392, 1.5416, 1.5435 and 1.5480