Forex: GBP/USD flat for the week around 1.5100 despite all the noise

FXstreet.com (Barcelona) - Following the 75 pips swings to both sides first to weekly lows 1.5027 yesterday followed by weekly highs at 1.5187, Cable is at the same point is was last Friday by the closing bell around the 1.5117 last, unchanged for the whole week so far. According to BK Asset Management director Kathy Lien: “The Bank of England did not grow more dovish in the face of weakening economic data,” the analyst notes, while “Instead, they expressed concerns about unwanted depreciation of their currency and the impact that it could have on inflationary pressures.”

“This discussion could very well shift the outlook for the British pound whose recent sell-off was caused largely by expectations for easier monetary policy,” Kathy concludes. Fro the technical perspective: “It remains that a clear break above 1.5175 opens up resistance at 1.5220,” says CMT and FXstreet.com Independent Analyst Fan Yang, “above which 1.5321 would be in site and cable would start to establish a bottom,” he suggests, while in the other hand “A break below the 1.5025 session low should revive the bearish outlook,” Fan adds.

Support levels ahead of key risk event for the London session in the form of UK retail sales at 09:30 GMT are found by Mr Yang at: 1.4856, 1.4941 and 1.5016, while resistance levels at: 1.5176, 1.5261 and 1.5336.