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11 May 2015
GBP/USD turns green near 1.5460, BOE awaited
FXStreet (Mumbai) - The British pound wiped out most losses and turned in the positive territory against its US counterpart in the European session, driving GBP/USD to fresh session highs above 1.5450 levels, as the traders unwound their GBP shorts ahead of BOE rate decision. While the US dollar halted its upsurge and retreated slightly across the board, lifting the cable.
BOE announcement in focus
The GBP/USD pair trades flat at 1.5458, having posted session highs at 1.5469 some minutes ago. The cable shaved-off losses and edged higher in the mid-European session largely on the back of a short-covering rally after the recent weakness in GBP/USD as traders gear up for BOE decision due out shortly.
Moreover, the greenback took a breather in its rally and steadies versus its major peers, which helped the GBP/USD pair to recover. The DXY trades higher by 0.26% at 95.16 levels, retreating from 95.34 session highs.
Meanwhile, the BOE statement is widely expected to be a non-event with little impact on the pound. The policymakers are very likely to keep the monetary policy stance unchanged in May by maintaining the base interest rate at the record low level of 0.5% amid slowing growth and very weak CPI at the moment.
Later in the day, US labour market condition will be reported in the US session amid a data-thin trading session today.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5480 above which gains could be extended to 1.5500 (April 29 High) levels. On the flip side, support is seen at 1.5394 (Today’s Low) below which it could extend losses to 1.5381 (Feb 27 Low) levels.
BOE announcement in focus
The GBP/USD pair trades flat at 1.5458, having posted session highs at 1.5469 some minutes ago. The cable shaved-off losses and edged higher in the mid-European session largely on the back of a short-covering rally after the recent weakness in GBP/USD as traders gear up for BOE decision due out shortly.
Moreover, the greenback took a breather in its rally and steadies versus its major peers, which helped the GBP/USD pair to recover. The DXY trades higher by 0.26% at 95.16 levels, retreating from 95.34 session highs.
Meanwhile, the BOE statement is widely expected to be a non-event with little impact on the pound. The policymakers are very likely to keep the monetary policy stance unchanged in May by maintaining the base interest rate at the record low level of 0.5% amid slowing growth and very weak CPI at the moment.
Later in the day, US labour market condition will be reported in the US session amid a data-thin trading session today.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5480 above which gains could be extended to 1.5500 (April 29 High) levels. On the flip side, support is seen at 1.5394 (Today’s Low) below which it could extend losses to 1.5381 (Feb 27 Low) levels.