FXStreet (Edinburgh) – The sterling is now trading in quite an erratic mood vs. the dollar following the press conference by J.Yellen, with GBP/USD navigating the mid-1.50s.
GBP/USD bounces off 1.4950
The pair’s upside seems to be limited by the 1.5100 neighbourhood so far, while market participants are closely following Yellen’s press conference.
Fed’s Chief J.Yellen has argued that today’s rate hike reflects confidence that the economy continues to improve, while she deemed the rate hike as ‘moderate’. Yellen also added that future policy actions will hinge on the evolution of the economy.
J.Yellen stressed that there still remains some slack in the labour market and the mild tone in consumer prices are considered as ‘transitory’. She now sees Fed Funds Rate rising by end-2018 close to normal long-run level.
GBP/USD important levels
The pair is now up 0.36% at 1.5078 and a breakout of 1.5227 (55-day sma) would open the door to 1.5336 (high Nov.9) and finally 1.5322 (200-day sma). On the other hand, the next support lines up at 1.4954 (low Dec.8) followed by 1.4893 (low Dec.2) and then 1.4853 (low Aprl.21).
(Market News Provided by FXstreet)