GBP/USD Recent Upside Momentum Fades
| Support | Resistance |
|---|---|
| S1: $1.3352 | R1: $1.3454 |
| S2: $1.3340 | R2: $1.3470 |
| S3: $1.3290 | R3: $1.3488 |
Essential Insights
Last week’s upside momentum in Sterling has faded away as Cable moved lower. The Focus had moved across the Atlantic this week with Janet Yellen’s most recent speech stoking December rate rises hope for the US Dollar. However, BOE governor Mark Carney will speak on Thursday and Friday so pole position could yet swing back towards the UK.
Technicals
All three of Tuesday’s supports were swept aside by Cables downside move on Wednesday. Two of those now become resistance. But sterling regained some composure in the season and moved back above $1.3400/20 before selling off once more. As a result, a retest of the early September uptrend line now seems likely.
Fundamentals
Speeches by FOMC members and most notably Chair Janet Yellen have pushed a December rate rise, in the US, front and centre once more as rising oil prices helped to allay fears over US inflation. Dec Fed Fund Futures show an 81% probability for just such a rise. However two speeches by Mark Carney, in the next 48 hours, could put GBP in the driving seat once more.
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