HomeContributorsTechnical AnalysisSterling Lower On Hawkish Carney Speech

Sterling Lower On Hawkish Carney Speech

The British pound fell below the 1.3500 level during the late European trading session, hitting 1.3464, after Bank of England Governor Mark Carney delivered a hawkish speech on UK interest rate increases.

Speaking at the United Nations headquarters in Washington DC, Carney said ‘any rate increases are expected to be gradual and limited’. Price-action in the GBPUSD pair has now recovered above the 1.3500 handle, after yesterday’s steep drop from 1.3618.

Going forward, sterling risks further losses below the 1.3500 handle, as the pairs lower-time frame bearish MACD divergence extends all the way down to the 1.3390 level.

Key intraday technical support is found at 1.3502, 1.3464 and 1.3435. The pairs critical 100-week moving average now sits at the 1.3419 level.

GBPUSD intraday resistance is seen at 1.3524, with the 50-hour moving average and daily pivot point above, at 1.3532-33.

Above the daily pivot point, further resistance is seen at the weekly pivot point, at 1.3553 and the recent swing price-high, at 1.3569.

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