- GBP/USD has broken major support 1.4250 and hits fresh 6- year low around 1.41290. It is currently trading around 1.4156.
- Pound Sterling declined against all major pairs on Tuesday after more dovish comments by BOE Governor Mark Carney.
- On the economic front UK inflation data released yesterday came better than expected and Pound sterling showed a slight jump but BOE Governor Comments on interest rate hike in University of London dragged the Pound sterling to 6 year low against USD.
- Mark Carney stated that BOE will start rising interest only when core CPI "notably nearer the 2% target". So this confirms that BOE will start increase interest rates only after 2017.
- Technically the pair has slightly recovered after making a low of 1.4129. The pair's minor support is around 1.4120 and break below will drag the pair further down till 1.4000/1.3650 level.
- On the higher side 1.4300 (7 day EMA) will be acting as major resistance and break above will take the pair to next level 1.4360/1.4450.
- Momentum indicator StochRSI indicated the pair is in oversold level and a slight jump till 1.4285 is possible.
It is good to sell on rallies around 1.4250 with SL around 1.4360 for the TP of 1.4000/1.3650
