GBP/USD

Monday and Tuesday was scheduled to be a quite important day for the UK. At the yesterday's session, the pound lost most of its Monday's gains against USD. Eyes shifted to the FOMC meeingt. As we knew, the UK going to hold its interest rates lower for a longer period than expected. We expect the Federal Reserve to hike interest rates by 0.25% in June or September. The cable grounded towards the lowest level since mid-2013. The cable made a low at 1.47000. We hinted 500 pips fall in case the price close below the level of 1.4810. But the event does not occur yet. We are still waiting for lower targets. The EUR/GBP cross is also weighing on the pound. The eurozone is the UK's major trading partner. The UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure. Prices are trading in a bearish channel. Strong resistance is seen at 1.4900 and 1.4950. Until the price closes below 1.4950, a bearish view remains in play. Intraday support is likely to be found at 1.4720 and 1.4700. We recommend selling below 1.4700 with targets at 1.4580 and 1.4550 in the near term and at 1.4350 in the medium term. We expect the pair to hit 1.4350 or 1.4200 before May/June. We expect the bottom to be formed after the election in the UK.

Trade: Selling below 1.4700

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