GBP/USD keeps the trade near the key support at the 1.2100 handle following the Boe’s Financial Stability Report and the NIESR results.
GBP/USD depressed, looks to Trump
Spot stays entrenched into the negative territory on Wednesday, testing the 1.2100 neighbourhood following Carney’s testimony before the Treasury Select Committee.
Carney noted that the biggest risks to UK’s financial stability are coming from the global economy, while the Brexit process has the capacity to amplify those risks.
On the data front, and adding to earlier results from the manufacturing and industrial sectors, NIESR GDP Estimate for Q4 has come in at 0.5%, matching both consensus and the previous reading.
Later in the session, president-elect Donald Trump’s press conference should grab all the attention, with the main focus on the potential policies to develop under his administration.
GBP/USD levels to consider
As of writing the pair is retreating 0.59% at 1.2104 and a break below 1.2098 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7). On the upside, the initial hurdle lines up at 1.2302 (20-day sma) followed by 1.2414 (55-day sma) and finally 1.2431 (high Jan.6).