GBP/USD trims gains on not so dovish Yellen

By FXStreet The GBP/USD trimmed gains to trade near 1.4510 levels after Fed’s Yellen came out not as dovish as expected by markets.

Back below key Fibo levels

The spot is back below 1.4513-1.4519 (5-DMA and 23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079). The bid tone around USD gathered traction after Yellen’s statement showed the central bank has taken a note of risks to US economy (due to equity sell-off and USD strength), but is not considering abandoning policy tightening.

The drop in the Cable clearly indicates the markets were positioned for a more dovish statement.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4513-1.4519 (5-DMA and 23.6% of 1.5930-1.4079 + 38.2% of 1.5230-1.4079), above which the spot could target 1.4546 (Feb 8 high). On the other hand, a break below confluence of support around 1.4450 (hourly 200-MA + hourly 50-MA) would open doors for a drop to 1.44 levels.
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Source:: FX Street