Wednesday 21 September 2016

GBP/USD slumped to mid point of 1.29 mark

During yesterday’s session GBP/USD pair was quite hesitant but overall still manages to retain the bearish bias. Following the BoJ’s statement this morning the pair slumped to 1.2945, but shortly afterwards retreated to 1.2967. The policy framework presented today by BoJ to keep rates unchanged fueled the US dollar’s strength and pushed the USD index 0.25% higher.
Fist resistance that should be considered is located at 1.3050, above which 1.3100 would be tested. On the downside, a clear break and daily close below 1.2900 might bring the price down to test 1.2790. As long as the pair stays below 1.3500, the bearish scenario is still is pace.


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