FXStreet (Mumbai) – The weaker-than-expected US data did little/no damage to the USD, leaving the GBP/USD pair unaffected around the two –week low of 1.4907.
BOE liftoff in Feb 2017?
Historical data shows on an average the BOE hiked rates within three months following the Fed’s first rate hike. However, the situation appears different this time. The Sonia forwards indicate a 25 basis point hike could happen in Feb 2017.
The odds appear stacked against the BOE liftoff in 2016 due to record high trade deficit, weak wage growth, low inflation and Brexit vote. Meanwhile, the Fed hinted at 4 hikes next year. Consequently, the cable did not respond to the weaker US data released today.
GBP/USD Technical Levels
At 1.4819, the immediate support is seen at 1.4895 (Dec 2 low) – 1.4888 (76.4% of Apr-Jun rally), under which the pair could target 1.4739 (Apr 1 low). On the other hand, the resistance is seen at 1.4957 (Dec 8 low), above which the pair could rise to 1.4994 (Nov 30 low) – 1.50.
(Market News Provided by FXstreet)