GBP/USD has been good two way business on the back of dollar weakness to start with, following Yellen yesterday, and cable bulls running into offers through the midway point of the 1.44 handle.
The ADP report was supportive to the dollar today and underpins Yellen’s bullishness in that respect of the economy. However, for anything positive to stick to the US economy we need to see a continuation of steady growth and full jobs capacity to offset the concerns around a global slow down.
Evans backs Yellen’s dovish tone
In respect of the UK. Brexit remains the biggest near term risk to financial stability, as according to BoE Governor, Mark Carney. While the docket has been quiet in the UK on the calendar, tomorrow will heat up with GDP Q4 and Carney who is due to give a press briefing mid day during the US shift.
GBP/USD levels
GBP/USD is at a tipping point on the charts around 1.4380 where the price is struggling to make a convincing bullish break through on to the 1.44 handle and beyond. Up head, on a break, there are the twin perils of 1.4568, the April 2015 low and the 1.4665 February 2016 high where price could find strong resistance. On the downside, on the wide, the key support is located at 1.4083, being the 21st January low that guards the 1.3837 end of February low.
(Market News Provided by FXstreet)