29 Apr 2015
GBP/USD: Focus remains on FOMC statement – FXStreet
FXStreet (Barcelona) - According to Omkar Godbole, FXStreet Editor and Analyst, any fresh signals for a September rate hike from today’s FOMC statement will lead GBP/USD rally to halt and correct lower to 1.51 levels.
Key Quotes
“The market now seems focused on what the Fed will do when they meet today. The investors will look out for a possible change in the language of forward guidance, although I believe a clear indication of the timing of the interest rate hike is highly unlikely.”
“However, it would not be surprising if the policy statement once again triggers the expectation of the interest rate hike in September. Moreover, the first quarter is usually the slowest in the US, a point which could provide enough reason to Fed to remain optimistic. At present, markets seem convinced that the Fed would delay the rate hike to end 2015 or early 2016. In such a case, the rally in the GBP/USD could halt, leading to a technical correction to 1.51 levels. The pair could also begin the slide on election uncertainty once the Fed event is through.”
“The pair currently trades at 1.5343, which is the 100% fib expansion level of 1.4564-1.5051-1.4854. Fresh offers were seen above the same level in the previous session. The overbought RSI on the daily, hourly and 4-hour time frame could trigger a technical correction today.”
“The pair could see a fresh wave of offers in case it breaks below 1.5318, which is the 76.4% Fib retracement of 1.5550-1.4564. In such a case, the pair could drop to its 5-DMA at 1.5250.”
“The immediate resistance is seen at 1.5420.”
Key Quotes
“The market now seems focused on what the Fed will do when they meet today. The investors will look out for a possible change in the language of forward guidance, although I believe a clear indication of the timing of the interest rate hike is highly unlikely.”
“However, it would not be surprising if the policy statement once again triggers the expectation of the interest rate hike in September. Moreover, the first quarter is usually the slowest in the US, a point which could provide enough reason to Fed to remain optimistic. At present, markets seem convinced that the Fed would delay the rate hike to end 2015 or early 2016. In such a case, the rally in the GBP/USD could halt, leading to a technical correction to 1.51 levels. The pair could also begin the slide on election uncertainty once the Fed event is through.”
“The pair currently trades at 1.5343, which is the 100% fib expansion level of 1.4564-1.5051-1.4854. Fresh offers were seen above the same level in the previous session. The overbought RSI on the daily, hourly and 4-hour time frame could trigger a technical correction today.”
“The pair could see a fresh wave of offers in case it breaks below 1.5318, which is the 76.4% Fib retracement of 1.5550-1.4564. In such a case, the pair could drop to its 5-DMA at 1.5250.”
“The immediate resistance is seen at 1.5420.”