Sterling ticking higher
GBP/USD has made a small recovery over the weekend as the dollar pauses from its upward trajectory. The gains that the currency pair made in February have been nearly wiped out this month, and the pound has fallen back into the downward trend that it has been in since June 2014. We are not expecting major economic announcements from the UK or the US today, and market volatility is not expected to be high.
Mark Carney and Ian McCafferty are due to speak tomorrow at 2.35pm and 6.30pm (London time) respectively, and the commentary will be carefully watched by the market. Mr McCafferty is one of the more hawkish members of the Bank of England, and he could trigger short-term buying if he expresses hawkish sentiment.
GBP/USD is still in last week’s downward trend with the first downside target at $1.50, and if that level is punctured it will bring $1.4970 into sight. The upside target is $1.51, and beyond that traders will look to the 50-hour moving average of $1.5160.