GBP/USD Forecast: weighed by dollar's strength, but waiting for Carney

Valeria Bednarik FXStreet

The GBP/USD pair eased on the back of dollar's broad strength, but holds above the 1.2400 level, ahead of the UK inflation hearings. Carney & Co will speak before the Parliament on the matter, and any hint of upcoming monetary policies will b quickly priced in the pair, particularly in the case of a dovish comment, given market's favor towards the US currency these days. Later on the day, eyes will turn to different speeches from FED's officers in separaded events, as speculative interest will be looking for clues of a March rate hike.

In the meantime, the technical picture shows that the pair stands at the lower end of its latest range, modestly gaining downward strength. In the 4 hours chart, the price is developing below a horizontal 20 SMA, whilst technical indicators lack directional strength within negative territory. The immediate support comes at 1.2380, from where the pair bounced twice during the last few days, followed by 1.2345, this month low. Below this last, the pair will likely accelerate its decline towards the 1.2290 region.

A short term resistance comes at 1.2470/80, followed by a stronger one in the 1.2540 price zone. An approach to this last will likely attract selling interest.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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