We’re wiping out the early morning Carney jump and have just fallen to a new low of 1.6062, just 12 odd pips from the pre release levels. Mike hit the nail on the head with his comments on the move. Such a spike based on the comments in real context made that a massive sell. The chances are we may stay elevated on the back of dollar weakness rather than pound strength going forward.
The move took us up towards the short term channel top which is at 1.6150. The supporting 55 h4 ma has moved up to 1.6010 and it marked the low yesterday.
GBP/USD h4 chart 27 September 2013
We could well be visiting the highs again soon if the markets nerves start to jangle over the US debt situation. Adam knocked a handy little post together last night with a few different trading scenarios from various sources.
