GBP/USD Heading For New Lows Or.....

 GBP/USD Heading For New Lows Or.....

GBP/USD fall from 1.3444 extended last week and initial bias is on the downside for 1.2865 support. As noted here before. 

Break of 1.2750 the last low will confirm this bearish case and would target next projection level at 1.23-1.24. On the upside, above 1.3170 minor resistance will possibly extend the consolidation pattern ,In the bigger picture, the down trend is still in progress.
no change in the view that down trend from 2.1161 is still in progress. Current momentum suggests that the down trend will go deeper than originally expected. But at this point, there is strong support around 1.23-1.240

gbp/usd  

Dollar weakened broadly last week after Fed left its policy rate unchanged at 0.5%. The accompanying statement unveiled a more divided committee with 3 members voting for a rate hike while another 3 lowered their 2016 dot to support no rate hike this year. The Fed delivered a more hawkish message, both in the statement and in Chair Yellen's speech at the press conference, expressing confidence in the economy.
 We can see both strongly signal that the Fed is planning for a rate hike in the coming meetings. Despite being increasingly hawkish, the Fed has pushed down the path of interest rates over the medium term,.In other markets, US stocks rebounded strongly after FOMC but lost momentum towards the end of the week. US yields also dropped sharply post FOMC.

BOJ introduced a new policy framework, in order to achieve the inflation target of 2%.,BOJ would control short-term and long-term interest rates, while, for the second one, BOJ commits to expanding the monetary base until the year-on-year rate of increase in the observed CPI exceeds 2%, and stays above it in a stable manner.. The policy change indicates that BOJ has shifted from 'monetary base' targeting to 'nominal yield curve' targeting. -Shifts Policy Framework to Nominal Yield Curve Targeting

sterling 

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