After Thursday’s rally for sterling against the dollar, the currency pair reversed at market opening with GBP losing 0.4%.
Thursday saw the FED announcement through the FOMC minutes indicating that energy prices are reducing U.S inflation below the FED’s long term goals. Markets lost immediate confidence in the greenback.
However most analysts read the FED outlook as optimistic and that the interest rate will rise at some point in the first half of 2015.
Friday’s analysis from STOCK.com sees the GBPUSD Day Trading Strategies as follows:
Bullish scenario: Long positions above the daily pivot point 1.5415$ with targets at 1.5485$ next 1.5555$ in extension.
Alternatively, Bearish Scenario: Short positions below the daily pivot point 1.5415$ with targets at 1.5345$ next 1.5275$ in extension.
Thursday’s market closed at 1.5417 with gains to the greenback; by 9.30 GMT, the pound had weakened to 1.5351.
In the meantime, UK Core Retail Sales (MoM) (Jan) fell below expectations at -0.7% versus forecast figure of -0.1%, which would have maintained retail sales. Later Friday, U.S Manufacturing PMI for February is due and expected to fall to 53.6 from 53.9, which may bring another fluctuation in the pair.
MT4 chart: GBPUSD
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