Market Overview

GBP/USD Technicals – 1.59 Broken Ahead of BOE Minutes

5 Minutes Chart

http://forexblog.oanda.com/mserve/GBPUSD_211112M5.PNG

Price broke the 1.592 interim support after EU leaders said no firm decision was made with regards to Greek bailout funds. There were various bullish rhetoric about how Greece has made progress, and how it is simply a “technicality”  causing the delay. Regardless, market did not take the news kindly and we saw GBP/USD consolidating just above 1.59 after the fallout. However bearish sentiment appears to take hold again during Europe opening hours and we've broken from the interim consolidation area heading lower before BOE minutes are released.

Hourly Chart

http://forexblog.oanda.com/mserve/GBPUSD_211112H.PNG

Hourly chart shows the significance of the current sell-off, with price breaking below the hourly support, opening up 1.587 and 1.582 previous support levels. BOE Minutes may yet cause GBP/USD to rally should it be more hawkish than expected. How price behave along the 1.59 support turned resistance will determine if Cable will stay between 1.50/1.593, or 1.583/1.59.

 

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