The BOE Inflation Report and comments from Mark Carney were viewed as hawkish today. The GBP/USD is reflecting this in the price action as the pair breaks higher. Also, please note the GBP is strong against the EUR, CAD, AUD, NZD and CHF as well.
The GBP/USD looks set to test the 1.5480 and the 1.5800, which would be the 38% retracement of the drop from July 2014.
Blake Morrow
Chief Currency Strategist, Wizetrade
The last time the DXY was my EDGE Chart of the Day the DXY peaked within pips of what we had expected. Since then the USD has been consolidating, slowly building a “flag” pattern on the 4 hour chart. Based on this chart below, the USD index could pullback towards the 127% extension at 92.93, just above the major breakout point from November 2005 (faint blue line 92.65) which may be the next buying opportunity for the USD index (92.70-90). Here’s the chart:
Blake Morrow
Chief Currency Strategist
Disclaimer – I am short some USD’s (via spot market) currently, but may flip to long in the coming session(s)
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