GBP/USD: Limited recovery, remains near multi-year lows

By FXStreet FXStreet (Córdoba) – A week ago the pound started an important rally against he US dollar, recovering from the lowest level since 2009 but it was limited and after a sharp reversal, cable is about to end the week modestly lower.

From 2-week highs to 1.42

During the Asian session, the decision of the Bank of Japan boosted risk appetite and GBP/USD climbed to 1.4412, hitting a 2-week high. The pair appeared to be ready to extend the rally but it turned to the downside falling more than 200 pips in a few hours.

The rally was capped again by the 20-day moving average that stands around 1.4390. The pair traded above but it failed to consolidate and ended making a reversal. During the last hours of trading, it trimmed losses and climbed back above 1.4200. It was about to end the week around 1.4220/40, slightly below last week close.

Another busy week

After days with key economic data from the UK and the FOMC decision, next week is also going to be busy. The most important event will be the release of the Bank of England decision (and the Inflation Report) and the Non-Farm Payroll report in the US. …read more

Source:: FX Street