Carney comments send pound lower. Rosengren speaks more hawkish about rates
The GBPUSD has moved sharply lower after comments from Carney from his delayed Mansion House speech.
The pair is trading at the lows for the day. Fed's Rosengren just commented that "low rates put intermediaries and economies at risk" and further adds that "low rates make fighting future recessions tougher". So you have to go higher to be able to stimulate later. HMMMM. In any case the GBPUSD has dipped more on the comments.
Technically, the pair is approaching the lows from June at its 100 day MA at 1.2634-40 area. The 100 day MA is also not far away at 1.26284. That area should give traders some cause for pause, with the potential for profit takers and the "buy the dip" crowd. However, the sellers remain in control. So a move below and look for the dip buyers to turn around and sell. The high from March at 1.2614 is another target. PS the GBPUSD stalled against the 100 hour MA at the day highs (blue line). That keeps the sellers more in control.
