The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Sterling bears in full flow
GBP/USD has reached a key technical area of resistance to the downside at $1.556, which the pair has since bounced off heading into the London open session on Thursday. Wednesday’s FOMC release saw a rather muted approach to talk of rate normalisation as well as a downplaying of the role oil has, or indeed may have, in exacerbating pre-existing fears regarding global deflation. As a result, both stocks and the dollar have come in for widespread support.
The intermediate directional bias in GBP/USD is likely to be determined by a close either side of the aforementioned $1.556 level. A close above could signal a re-testing of topside support at $1.560-$1.565, while a close below sees the next clear level of resistance at the $1.547 level.