17 Dec 2015
GBP/USD drops for fourth consecutive day
FXStreet (Mumbai) - The GBP/USD fell in Asia, marking its fourth consecutive day of losses, after the Fed came out with a hawkish 25 basis point hike.
Fed to raise 4 times next year, No BOE liftoff?
The Fed, via its Dot Chart, indicated that it intends to raise rates 4 times next year. Markets were expecting the Fed to signal a very slow rate hike path and have been caught off guard by the Fed’s hawkish dot chart.
Meanwhile, BOE liftoff appears a distant dream amid slowing wage growth, record trade deficit, a slowdown in the energy and mining sector and Brexit vote. Consequently, the Sterling was offered in Asia, although the weakness is in line with a drop seen in other majors.
GBP/USD Technical Levels
At 1.4950, the immediate resistance is seen at 1.50, above which the pair could rise to 1.5087 (61.8% of Apr-Jun rally), followed by a hurdle at 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.4895 (latest cyclical low) would expose 1.4856 (Apr 21 low).
Fed to raise 4 times next year, No BOE liftoff?
The Fed, via its Dot Chart, indicated that it intends to raise rates 4 times next year. Markets were expecting the Fed to signal a very slow rate hike path and have been caught off guard by the Fed’s hawkish dot chart.
Meanwhile, BOE liftoff appears a distant dream amid slowing wage growth, record trade deficit, a slowdown in the energy and mining sector and Brexit vote. Consequently, the Sterling was offered in Asia, although the weakness is in line with a drop seen in other majors.
GBP/USD Technical Levels
At 1.4950, the immediate resistance is seen at 1.50, above which the pair could rise to 1.5087 (61.8% of Apr-Jun rally), followed by a hurdle at 1.5113 (23.6% of 1.5819-1.4895). On the other hand, a break below 1.4895 (latest cyclical low) would expose 1.4856 (Apr 21 low).