GBP/USD Hits Low Support On Broadbent’s Bearishness

The deputy governor of the Bank of England, Ben Broadbent, said that he is not ready to raise rates quite yet. To balance things out, he did say “there is a reason to see the MPC moving towards higher rates, but there are lots of imponderables”.

He also said the mood of business is key to his thinking of rates and that firms will likely remain nervous regarding Brexit uncertainty. At first, Brexit did not hit the economy, but that was 2016. We are seeing a different picture in 2017.

His boss, Governor Mark Carney, sent mixed messages lately.

GBP/USD hits low support at 1.2820. This was the post-elections high before Carney said the pound shooting higher. Below 1.2820, we find 1.2775 and 1.27. Resistance awaits at 1.29.

Here is how the move looks on the one-hour chart:

The UK will soon release its jobs report. Wages are closely watched, especially as inflation is rising. Standards of living are basically falling in Britain.