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11 Feb 2014
GBP/USD retreats on Yellen testimony
FXStreet (Córdoba) - The GBP/USD retreated from February highs at the beginning of the American session as the greenback recovered ground in the wake of Janet Yellen testimony.
Yellen says…
Fed Chair Yellen will speak before the US Congress at 15:00GMT but her prepared remarks were published earlier. As for monetary policy, testimony signaled Yellen will most likely continue the taper path Bernanke started. However, Yellen highlighted taper is not on a preset course and decisions remain contingent on the outlook for the labor market and inflation. Fed's chief also said crossing the 6.5% unemployment threshold will not automatically prompt an increase in the federal funds rate.
GBP/USD technical levels
The GBP/USD had peaked at 1.6495 minutes before Yellen testimony and then retreated to the 1.6430 area. At time of writing, the GBP/USD is trading at 1.6450, still up 0.3% on the day, with immediate resistances at 1.6495/1.6500 and 1.6565 (Jan 30 high), while supports are seen at 1.6390 (Feb 11 low) and 1.6340 (Feb 4 & 5 highs).
Yellen says…
Fed Chair Yellen will speak before the US Congress at 15:00GMT but her prepared remarks were published earlier. As for monetary policy, testimony signaled Yellen will most likely continue the taper path Bernanke started. However, Yellen highlighted taper is not on a preset course and decisions remain contingent on the outlook for the labor market and inflation. Fed's chief also said crossing the 6.5% unemployment threshold will not automatically prompt an increase in the federal funds rate.
GBP/USD technical levels
The GBP/USD had peaked at 1.6495 minutes before Yellen testimony and then retreated to the 1.6430 area. At time of writing, the GBP/USD is trading at 1.6450, still up 0.3% on the day, with immediate resistances at 1.6495/1.6500 and 1.6565 (Jan 30 high), while supports are seen at 1.6390 (Feb 11 low) and 1.6340 (Feb 4 & 5 highs).