GBP/USD – corrective rally at the mercy of Fed
|Corrective rally in the GBP/USD pair is at the mercy of Yellen’s speech at Jackson Hole as Fed chairwoman’s remarks could single handedly narrow/widen the bond yield spread.
GDP figures could be ignored
Markets may ignore second quarter GDP data release in UK and US, although a significant downward revision of either figure could weigh over the respective currencies.
Markets expect Yellen to come out slightly hawkish although it will be very difficult for her to take sides – hawkish/dovish, given we are just a month away from US elections. An outright hawkish stance could derail the recovery in GBP/USD, while markets are likely to read neutral/data dependent stance as dovish one, thus helping Cable extend its post Brexit recovery.
GBP/USD Technical Levels
The spot was last seen trading around 1.32 levels. A break above Asian session high of 1.3216 could yield a rally to 50-DMA level of 1.3278, above which psychological level of 1.33 could be put to test. On the lower side, a break below daily low of 1.3185 would open doors for 1.3115 (10-DMA). A violation there could see the pair test support at 1.30 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.