Speaks at Lloyds

The GBPUSD traded at the lowest level since May 5th - taking out Friday's low by 6 or so pips (1.51278 vs 1.5134). The price has rebounded off that low and has moved toward the day's midpoint at 1.5166 (the high reached 1.5169). Over the last 2 hours the range has been confined to 20 pips in an up and down pattern. The price has remained below the days midpoint and the 200 bar MA on the 5-minute chart as well.

At 3:15 PM ET (1915 GMT), BOE's Mark Carney is to speak. The markets will certainly be all ears as far as any interest rate rise clues. Although thoughts are the BOE is behind the Fed in raising rates, inflation is not a concern. The market is not expecting a change until the 2nd half of 2016.

Technically, some key levels to track

Downside:

  1. 1.51278-34 - Low from Friday and today
  2. 1.50849 - 61.8% of the move up from the April low to the June high. The low price from May 5th was at 1.5086
  3. 1.4969-94. The lower extreme for 2015 was below this area

On the topside a move above the days midpoint at 1.5166 will next target:

  1. 1.5200-06. Trend line and 100 hour MA (see hourly)
  2. 1.5240- 456 - high from yesterday and 50% of the move up from the April low (see daily chart)
  3. 1.5288. High from Thursday last week
  4. 1.5330 - 38.2% of the move down from the Sept 18 high/100 day MA. 200 hour MA is moving in that direction.